IPO-bound foodtech company Zomato, along with Tiger Global, will pump in nearly $120 million into e-grocery player Grofers, sources said. The round will value Grofers at a little over $1 billion, turning it into the latest unicorn.
Zomato could also look at a possible acquisition of Grofers post its IPO, which is expected in a few months.
Sources added that the talks are in the final stages and come a year after similar discussions between the two companies for an M&A had fallen through the gaps.
Zomato and Tiger Global did not comment.
Grofers in a statement said "We don't comment on speculation. Our focus at present is to do our best to serve consumers at this time of the country's need; while we continue to build technology that empowers the grocery ecosystem to make products more affordable and accessible for millions of Indian households."
Grofers CEO Albinder Dhindsa had said in a June 21 blog post that 'next round of funding is secure' while announcing that the company would give 33 percent hikes to its tech teams.
"After coming out of the second wave, and at a point where our next funding round is secure, I think it is time to kickstart a lot of initiatives that I have been waiting for the right time to begin," Dhindsa wrote in the post.
"The entire tech team gets a no-ifs-and-buts 33 percent increase in salary starting July (i.e. if your annual salary was Rs 30 lakhs, it will now be Rs 40 lakhs). Depending on how much impact each of you have created over the last year, there will also be a hefty ESOP allocation coming your way which will be communicated to you in the next few weeks,' he added.