Zomato Denies Acquisition Rumors of Shiprocket Amidst Strong Financial Performance

Zomato Denies Acquisition Rumors of Shiprocket Amidst Strong Financial Performance

Written by Sanjay Kumar

In response to recent reports circulating in the media, Zomato, the leading food delivery platform, has officially refuted claims suggesting its intention to acquire startup Shiprocket for a staggering $2 billion.

In an official filing with the Bombay Stock Exchange (BSE), Zomato addressed the matter, stating, “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.'” While the company typically refrains from commenting on media speculation, it deemed it necessary to provide clarity given the potential market impact of the reported deal.

Zomato categorically denied the acquisition statement, cautioning investors against the dissemination of incorrect news. The company emphasized its current focus on existing businesses, clarifying that there are no plans for acquisitions at this moment.

The initial reports, originating from Bloomberg, suggested that Zomato had extended an acquisition offer to the closely held Indian e-commerce shipping startup Shiprocket. The reported deal was estimated at a substantial $2 billion.

Despite the acquisition speculation, Zomato’s stock has exhibited positive returns throughout the year. Having surpassed its IPO price of ₹76, the Gurugram-based company has delivered impressive multi-bagger returns.

Zomato’s stock showcased a significant recovery in April, recording a notable gain of 27.25%. This positive momentum continued, with the stock closing each subsequent month in the green. The remarkable performance resulted in a staggering 108% return for the year 2023, with the stock closing at ₹128.20, up 2.77% as of yesterday.

Financially, Zomato reported a net profit of ₹36 crore in the September quarter, marking a substantial turnaround from the ₹251 crore loss in the same period last year. This signifies the company’s second consecutive quarter of profit, following a ₹2 crore profit reported in the June quarter earlier this year.

The impressive financial results were underpinned by a robust 71% growth in revenue from operations, reaching ₹2,848 crore. This growth was attributed to a surge in order volume across Zomato’s food ordering and quick commerce businesses.

Zomato’s sustained positive performance underscores its position as a key player in the competitive food delivery and e-commerce landscape, despite the recent acquisition rumors that have now been officially denied. Investors and industry observers will undoubtedly be closely watching Zomato as it continues to navigate the dynamic market landscape.

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