Zomato denies acquisition rumours of Shiprocket

Food delivery platform Zomato has rejected a news report claiming that the company will acquire startup Shiprocket for $2 billion.

In a BSE filing, Zomato informed, "We have noticed that there are certain news articles circulating in the mainstream media with the subject -Zomato offers to acquire Shiprocket for $2 billion".

Zomato said it generally refrains from commenting on media speculation but this time it decided to provide clarity due to the significant scale and potential market impact of the reported deal.

The publicly traded food delivery company added, "We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plan for any acquisition at this moment".

The initial reports, stemming from Bloomberg, suggested that Zomato made an offer to acquire closely held Indian e-commerce shipping startup Shiprocket. Citing sources, the news report had mentioned that Zomato would acquire the online platform for $2 billion.

This year, Zomato stock has yielded positive returns. The Gurugram-based company managed to cross its IPO price ( ₹76) and also delivered a multi-bagger return.

The Zomato stock demonstrated a substantial recovery in April, registering a noteworthy gain of 27.25%. It continued its winning streak, closing each of the subsequent five months with gains. This outstanding performance has resulted in the stock achieving a remarkable 108% return for the year 2023. Yesterday, the stock was up 2.77% at ₹128.20.

Zomato reported a net profit of ₹36 crore in the September quarter from a loss of ₹251 crore in the year-ago period.

The food aggregator reported a second consecutive quarter of profit. The company reported a ₹2 crore profit for the first time in June quarter this year.

Revenue from operations grew 71% to touch ₹2,848 crore, driven by a order volume surge across its food ordering and quick commerce businesses.