You are here: Home » Companies » News
Business Standard

Zomato invests $275 mn in four startups, will deploy $1 bn over two years

Propels Curefit to unicorn club by investing at $1.66 bn valuation

Zomato | Startups | Deepinder Goyal

Deepsekhar Choudhury  |  Bengaluru 

Photo: Shutterstock

Foodtech major on Wednesday said that it has committed investments of $275 million in four in the past six months and will deploy another $1 billion over one to two years, with most of it going to the quick commerce space.

The company said for this reason, it has shut down its nutraceutical business, selling its stake in sports start-up Fitso to Curefit for $50 million, will invest another $50 million in Curefit and in exchange and will take 6.4 per cent shareholding in the company in which Tata recently acquired a stake. This also means that Curefit’s valuation is at $1.66 billion after the investment.

The food delivery company has also signed definitive documents for investing $75 million in logistics company Shiprocket for an 8 per cent stake as part of a larger $185-million round.

said it will invest $50 million in e-commerce start-up Magicpin for 16 per cent stake as part of a total funding round size of $60 million. Magicpin allows omni-channel expansion for local retailers and has a network of more than 170,000 paying merchants in categories including fashion, food, electronics, grocery, pharma, entertainment across 50 cities in India.

founder and CEO said, “We are in the process of divesting or shutting down our non-core businesses which were not going to significantly move the needle for our shareholders in the long term. All of these businesses that we are divesting or shutting down, contributed less than 1 per cent to our adjusted revenue and 13 per cent to our adjusted EBITDA loss in Q2 FY22.”

The unicorn rush in India this year and growth of digital businesses has led the company to expand its ambitions and aim for creating a $10 billion business by revenue in a few years time. “The paradigm for India has changed within a year and that gives us a new opportunity to build a much bigger Zomato than what we dreamt of a year ago,” the company said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, November 10 2021. 22:32 IST