India multinational food delivery company Zomato is angling for a 10% stake in Indian e-grocey startup Grofers to stave-off competition from rivals Swiggy and Big Basket.
According to a report by ET Retail, the IPO-bound company has already filed a notification with the Competition Commission of India (CCI) to acquire a 9.3% stake in Grofers.
According to the document filed with CCI, Zomato has mentioned that the transaction will not lead to any impact on the competitive landscape.
The development follows an investment round where Grofers closed a US$120 million investment from Zomato and Tiger Global valuing it little over US$1 billion.
Zomato invested about US$100 in the e-grocer while Tiger Global, a common investor at the two companies, pumped in the balance.
The development comes as Zomato’s rival Swiggy is aggressively expanding its services beyond food delivery in the race to become a preferred e-commerce platform in the Asian nation.