New Delhi: The competition commission has approved the Zomato online food delivery platform proposed to purchase 9.3 percent of the shares in the Shopping Player of the Indian Grefers online grocery store.
Zomato, last month, said he had invested $ 100 million (around Rs 745 Crore) to obtain minority shares in Grofers because the company seems to have more exposure to the food segment online.
Zomato recently registered will get 9.3 percent of the shares in India Grofers Pvt Ltd and Hands On Tradees Pvt Ltd (hot).
Grofers International Pte is a Grofers Indian and Hot parent company.
In a tweet on Friday, the Indian Competition Commission (CCI) said it had cleared “the acquisition proposed by Zomato about 9.3% of shares throughout India and hands in trade”.
Zomato was included in January 2010 while India Grofers was established in May 2015.
HOT is into the B2B wholesale trade business with third party traders, making food products, food products and other items with a year of sales aim with wholesale purposes, and provides warehousing services , including storing food products and grocery goods to third party traders.
It was included in September 2015.
Under the transaction, Zomato will take around 9.3 percent of the shares in “each Indian and hot grofers along with certain rights in each target,” according to the notification submitted by the regulator.
The notification is mentioned about the potential of the market and the relevant segment where the activities of the parties overlap.
The market includes the supply of food ingredients, household goods, general goods, personal hygiene products, fruits and vegetables in India as well as narrower segments of B2B food supply, household goods, general goods, products Hygiene, fruits and vegetables of the country.
Other relevant markets are one for services provided by online platforms for food sales, household goods, general merchandise, personal hygiene products, fruits and vegetables in India.
“The parties proposed that the relevant market / segment potential that was identified above was very fragmented with the presence of several players, including some unorganized players, which will continue to impose significant competitive constraints.” The proposed transaction will not have an impact on the competitive landscape in relevant market potential in India, in any way, “said the notice.
The parties were Zomato, Grofers India, Hot and Groofers International.” IT (Grocery) is a great opportunity.
Wholesale online newborn current but developed rapidly not only in India but throughout the world …
we actively experimented in that room and recently invested USD 100 million for minority shares in Grofers, with the idea to get more space exposure That and building our strategies and plans around the business, “said Zomato CFO Akshant Goyal in July.