Zomato is about to accumulate a 9.3 % stake in on-line grocery supply platform Grofers, in accordance with a submitting with the Competition Commission of India (CCI). The newest transfer by the Gurugram-based restaurant aggregator comes simply months after Tata Digital acquired a majority stake in Grofers’ arch-rival BigBasket. The acquisition has additionally been deliberate within the midst of Zomato’s ongoing efforts to launch its preliminary public providing (IPO) in India. The deal between Grofers and Zomato might be aimed to tackle the likes of BigBasket and Swiggy.

As per the document filed with CCI, Zomato has sought an approval to accumulate the stake in Grofers in addition to its holding firm Grofers International and wholesale buying and selling firm Hands on Trades.

“The parties submit that the potential relevant markets/ segments identified above are highly fragmented with the presence of multiple players, including several unorganised players, who will continue to impose significant competitive constraints. The proposed transaction will have no impact on the competitive landscape in any potential relevant market in India, in any manner,” the submitting stated.

Zomato declined to touch upon the acquisition, whereas Grofers didn’t reply to a question concerning the deal on the time of writing.

The acquisition would assist Zomato enter the rising market of on-line grocery deliveries in India by Grofers. The firm did attempt to foray into the market by itself final yr and launched its grocery supply service in over 80 cities. However, that service was closed simply months after its launch.

Similar to Zomato, rival Swiggy additionally began its grocery supply service within the nation final yr. It had initially tied up with native retailers for deliveries. The firm shut down that mannequin however introduced its native hyperlocal grocery enterprise known as Instamart in August.

According to an estimate by session agency RedSeer, the grocery market in India is predicted to hit a gross merchandise worth (GMV) of $24 billion (roughly Rs. 1,78,900 crores) by 2025.

The development potential has attracted conglomerate Reliance Industries to ascertain its JioMart as a aggressive platform. Tata Digital additionally just lately invested Rs. 9,500 crores in BigBasket to accumulate its majority stake. In addition to conventional gamers, Amazon and Flipkart are closely investing to develop and enhance their current grocery supply fashions within the nation.

Aside from shifting into grocery deliveries, Zomato is presently busy getting ready for its IPO. The firm filed for the providing of as much as Rs. 8,250 crores in April and is presently anticipating a nod from the Securities and Exchange Board of India (SEBI).