Zomato gains on acquiring minority stakes in Grofers India and Hands-on Trades

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Shares of Zomato advanced nearly 2% in Friday’s early trade after the company informed bourses that it has completed the acquisition of 9.16% shareholding in Grofers India for Rs 518.21 crore and 8.94% shareholding in Hands-on Trades for Rs 222.83 crore.

The scrip traded 1.85% higher at Rs 137.50 at around 9.30 am (IST). On the other hand, the benchmark BSE Sensex was down 315 points, or 0.57%, at 55,313 at around the same time.

Earlier, the Competition Commission on August 13 approved online food delivery platform Zomato’s proposed purchase of 9.3% stake in online grocery shopping player Grofers India.

Zomato, last month, said it has invested $100 million (around Rs 745 crore) for acquiring a minority stake in Grofers as the company looks to have more exposure to the online grocery segment.

Grofers India is incorporated on May 26, 2015, and operates an e-commerce marketplace in India, providing an information technology platform on a digital and electronic network to act as a facilitator between third-party sellers of various products (such as grocery, fruits and vegetables, bakery items, personal care, health and hygiene, pet care, and baby care etc.) and potential buyers of goods.

It also provides support services to merchants in relation to sales made on the platform by the merchants, including, warehousing, logistics, order fulfilment, payment collection and other services and advertisement services for brands.

For the financial year ended March 31, 2020, Grofers witnessed a turnover of Rs 165.27 crore. The figures stood at Rs 71 crore and Rs 29.83 crore in FY19 and FY18, respectively.