Zomato denies an acquisition offer for Shiprocket amidst market speculation

In response to recent reports suggesting a potential $2 billion acquisition offer for delivery platform Shiprocket, Zomato has strongly denied the claims. The food delivery giant addressed the issue in an official regulatory filing, categorically labeling the news as “incorrect.”

The filing conveyed that the company had observed the presence of news articles in the mainstream media discussing the topic of 'Zomato offers to acquire Shiprocket for $2 billion.' The company explicitly rejected this assertion and advised investors to be wary of inaccurate information circulating in the market. The statement emphasized the company's ongoing commitment to its existing business endeavors, clarifying that there were no current plans for any acquisitions.

Deepinder Goyal, Zomato’s Chief Executive Officer, took to social media platform X to further dispel the rumors. In a post, he clarified that the company does not comment on media speculation but is providing this information out of abundant caution. He mentioned that this clarification is necessary due to the large size of the deal mentioned in the news article and the uncertainty it may create in the market.

Earlier this week, Bloomberg reported Zomato’s purported offer to acquire Shiprocket. However, it emphasized that “no concrete decision has been taken” at this stage.

It’s worth noting that Zomato is already an investor in Shiprocket, having acquired a stake during its $185 million Series E funding round in 2021. The funding round also saw participation from notable entities such as Temasek and Lightrock India.

As of Thursday, 21 December 2023, Zomato’s shares closed at Rs 127.55 apiece on the Bombay Stock Exchange (BSE), reflecting the market’s keen interest in the ongoing developments surrounding this potential acquisition. Investors are closely monitoring the situation, given the significance of the speculated deal.

You can read the statement given by Zomato CEO Deepinder Goyal at the following link: https://twitter.com/deepigoyal/status/1737881880350044214