Team News Riveting
New Delhi, August 13
The Competition Commission of India (CCI) on Friday approved the $100 million investment by food delivery major, Zomato Ltd. into e-grocer Grofers and its wholesale entity Hands on Trades Pvt. Ltd.
“The Competition Commission of India (CCI) approves proposed combination involving acquisition by Zomato Limited (Zomato) of approximately 9.3 per cent stake in each of Grofers India Private Limited (Grofers India) and Hands on Trades Private Limited (HoT) along with certain rights in each of the Targets,” the ministry of corporate affairs said in a statement.
Zomato is a public limited company. It primarily operates in the food services market and provides a platform that connects customers, restaurant partners and delivery partners, serving their multiple needs. Zomato’s subsidiary, Zomato Internet Private Limited, also operates Hyperpure, wherein it largely supplies fresh, high quality ingredients (such as vegetables, fruits, meats etc.) primarily to Zomato’s restaurant partners.
Grofers India is a private limited company that 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.
HoT is a private limited company that is engaged in the business of B2B wholesale trading with third party merchants, contract manufacturing of food products, grocery and other goods for the purpose of onward sale on a wholesale basis, and providing warehousing services including storage of food products and grocery goods to third party merchants.
Grofers International is an investment holding company and is the holding company of Grofers India and HoT.
In the first week of July, Zomato had sought approval from CCI to acquire a 9.3 percent stake each in online grocery firm Grofers and its wholesale subsidiary, with both companies signing the deal on June 29.
