Zomato offers to acquire Shiprocket for $2 billion: report

Zomato offers to acquire Shiprocket for $2 billion: report

In a move that could shake up the Indian e-commerce landscape, food delivery giant Zomato has reportedly offered to acquire logistics startup Shiprocket for a staggering $2 billion, according to Bloomberg.

While Zomato remains tight-lipped, citing its policy against commenting on "market speculation," the potential acquisition would mark a significant step towards their broader ambition of diversifying beyond meals.

Zomato already holds an existing stake in Shiprocket, having co-led a $185 million funding round in 2021 alongside Temasek and Lightrock India. Deepinder Goyal, Zomato's CEO, also previously made a personal investment in the startup before divesting it.

Shiprocket, a favorite among D2C brands, micro-entrepreneurs, and local businesses, aggregates their shipping needs and connects them with established logistics players like Delhivery and Ecom Express. Beyond basic shipping services, Shiprocket also offers technology solutions for retailers, helping them integrate their online stores with platforms like Shopify.

If the deal goes through, it would offer Zomato several strategic advantages:

  • Logistics dominance: Owning Shiprocket's extensive network and tech platform would allow Zomato to offer end-to-end delivery solutions, not just for food orders. This could attract new customers and strengthen their existing offerings.

  • D2C synergy: Zomato's existing partnerships with restaurants and food brands could be easily extended to D2C players on Shiprocket's platform, fostering cross-pollination and growth.

  • Tech stack expansion: Shiprocket's technology tools could be integrated with Zomato's platform, leading to streamlined operations and improved customer experience.

However, challenges remain. Integrating two large companies with different cultures and business models wouldn't be easy. Additionally, Zomato's $2 billion offer might face competition from other interested parties, potentially driving up the price and adding complications.

Regardless of the outcome, this potential acquisition signifies the evolving landscape of e-commerce in India, where food delivery and logistics are increasingly converging. With Zomato's bold move, the race for complete control over the online shopping experience has certainly gotten more interesting.

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December 21, 2023

Kalpana Maurya