Zomato dismisses rumors of acquiring Shiprocket

Zomato, the publicly traded food delivery platform, has refuted recent media reports claiming its intention to acquire the Indian e-commerce shipping startup, Shiprocket, for a speculated $2 billion.

In a filing with the Bombay Stock Exchange (BSE), Zomato addressed the circulating news articles, emphasizing its usual policy of refraining from commenting on media speculation but chose to provide clarification given the potential market impact of the reported deal. The company firmly denied the acquisition offer, cautioning investors against misinformation and reaffirming its focus on existing business operations, with no plans for acquisitions at present.

Originating from Bloomberg, the initial reports suggested Zomato's purported offer to acquire Shiprocket for $2 billion. Zomato's stock has shown positive returns throughout the year, surpassing its IPO price of ₹76. The Gurugram-based company demonstrated robust performance, with a notable 27.25% gain in April and continued success over the subsequent five months, resulting in an impressive 108% return for the year 2023. As of the latest update, the stock was up by 2.77% at ₹128.20.

Zomato reported a significant turnaround in its financials, with a net profit of ₹36 crore in the September quarter, marking a noteworthy improvement from the ₹251 crore loss in the same period the previous year.

This marks the second consecutive profitable quarter for Zomato, following a ₹2 crore profit reported in the June quarter. The company's revenue from operations experienced a robust 71% growth, reaching ₹2,848 crore, propelled by increased order volumes in both its food ordering and quick commerce segments.