Amid reports of discussions with rival Swiggy, between homegrown food delivery company Zomato has clarified that it was not in merger talks with anyone. "We have tremendous focus on our business metrics and have seen great success in our goal towards profitability. We are not in talks with Swiggy for a merger or acquisition," media reports said cited a Zomato spokesperson.
A report by Firstpost had on Tuesday said that the two companies were in early stage talks to explore possible merger to take on Uber Eats and Amazon's foray into food delivery business. Despite the presence of Uber Eats, the homegrown Zomato and Swiggy are the largest food delivery startups in the country.
Combining the two forces would be an attractive option for investors. Accel, Naspers and Tencent are the main investors of Swiggy. Zomato, the pioneer in food tech business in India, counts Infoedge Enterprises, Ant Financial and Sequoia among its marquee investors.
Earlier in 2017, too, reports had hinted at merger talks between Zomato and Swiggy. But the talks never saw the light of the day.
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In February, talks of a possible acquisition of Uber Eats by Swiggy were rife. The Indian food delivery business is estimated to be worth $5 billion and the booming market is expected to touch $15 billion by 2023.
Zomato, Swiggy and Uber Eats are the major players in the current market. Online retail giant Amazon, which is expanding its foothold in India, is gearing up for a much awaited December launch.
Amazon is taking calculated steps and offering competitive pricing to acquire restuarant partners, charging take rates much lower than Swiggy and Zomato. An acquisition in the segment will currently consolidate the competitive food delivery business in the country.
