Zomato may buy Grofers in all-stock deal amid buzz of possible merger

Zomato and Grofers are believed to have held preliminary talks over a potential merger according to sources, but a deal has not materialised because of the current coronavirus disease (Covid-19) pandemic.

Reports of a possible deal surfaced Tuesday, and sources confirmed that talks were held between high-level officials of the firms. However, these were preliminary talks and a deal may not go through.

“Their partnership in the grocery delivery segment with Zomato Market has worked well. This led to the two founders exploring the possibility of a merger, but then the situation changed with coronavirus,” said a person aware of the discussions.