Zomato, recently announced an investment of USD 175 million in three startups, namely, Shiprocket, Curefit and Magicpin, to diversify its bets following a blockbuster public listing. The company further plans to invest USD 1 billion in the upcoming 1-2 years, with a primary focus on the quick commerce space.

If reports are to be believed, Zomato has been in discussions to invest USD 75 million in Shiprocket, and also plans to make investments across a few other startups including Magicpin. The Shiprocket funding is part of the company’s USD 185 million fundraise, while Magicpin and Curefit’s are standalone equity rounds.

Zomato plans to invest in the food sector and the ecosystem surrounding for strong long-term gains. The goal is to create a hyperlocal e-commerce ecosystem by investing and partnering with other companies that are beyond the food sector.

Deepinder Goyal, Zomato’s Founder and CEO, mentioned that the food delivery market in India is still in its initial stage, and there is an immense opportunity to expand over the coming years. In this context, the firm plans to make continuous investments in market creation, while funding ecosystem companies around their food delivery business to reduce operating costs.

Speaking about the homegrown startups, Shiprocket was founded in 2012 and currently works with courier companies in India to connect merchants, consumers and supply-chain partners across thousands of locations around the world. The company has so far secured USD 94 million in investments.

Curefit, founded in 2016 by Flipkart’s former Chief Business Officer, Ankit Nagori, and Myntra’s Co-Founder, Mukesh Bansal, is presently valued at USD 1.5 billion. Whereas, Magicpin, founded in 2016 by Brij Bhushan and Anshoo Sharma, which connects hyperlocal brands and merchants with consumers, was valued at USD 165 million earlier this year.

Zomato recently raised over USD 1.25 billion by going public in different markets and it wants to continue this growth momentum by investing in other startups.

Source Credits: https://www.moneycontrol.com/news/business/startup/zomato-to-deploy-1-billion-over-1-2-years-in-startup-investments-picks-stakes-in-shiprocket-magicpin-and-curefit-7703601.html