Zomato invests $120 million in Grofers
IPO-bound food delivery platform Zomato has signed off to invest in online grocery startup Grofers, according to sources privy to the development. The deal comes at a time when more consumers are buying groceries online, owing to the COVID-19 pandemic.
With this investment, Grofers will turn a unicorn, a term used to describe privately funded technology startups that have a valuation of a billion dollar and above.
Interestingly, Grofers co-founder Saurabh Kumar announced on June 18, 2021 that he will be leaving the startup, eight years after building it with founder and CEO Albinder Dhindsa. Though he is giving up his operational roles in the company, he will remain a shareholder on the board.
He and Albinder together own less than 8 percent in a startup, with the majority currently held by SoftBank. Other investors include Tiger Global, Sequoia Capital, and DST Global. Sequoia is also an early investor in Zomato.