Zomato Cross-Sells Fitness Facility Arm Fitso To Curefit; Infuses Additional $50 Mn For 6.4% Stake

Zomato Cross-Sells Fitness Facility Arm Fitso To Curefit

In the cross-selling deal with Curefit, Zomato sold its sports facility platform Fitso for $50 Mn and infused an additional $50 Mn for a 6.4% cumulative stake

Zomato has also invested $75 Mn in Shiprocket for an 8% stake and $50 Mn in Magicpin for a 16% stake

The foodtech also declared its Q3 FY22 results with adjusted revenue during the quarter at $189 Mn, a 22.6% QoQ growth and a net loss of $57.7 Mn

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Food delivery aggregator Zomato has announced a slew of agreements as it released its Q2 FY22 earnings. The foodtech has announced that it has sold its fitness facility arm Fitso to fitness startup Curefit for $50 Mn.

In the cross-selling, Zomato also infused an additional $50 Mn in cash in Curefit. This way, it has acquired a total shareholding of 6.4% worth $100 Mn in the fitness startup.

“This will help us potentially explore cross-selling benefits between Zomato and Curefit, as we see food and health becoming the same side of the coin in the long term,” Zomato said in the exchange filing.

In January 2021, Zomato had acquired full-stack sports facilities provider and discovery startup Fitso in a deal reportedly worth INR 80 Cr – INR 100 Cr.

Fitness startup Curefit, on the other hand, counts Tata Group as one of its recent investors. Tata Digital, the digital arm of Tata Sons, invested $75 Mn in Curefit to strengthen its super app plans. Tata has also appointed Curefit cofounder Mukesh Bansal as the president of Tata Digital.

Besides this deal, Zomato has also announced an investment in Shiprocket and magicpin.

It has signed definitive agreements to invest $75 Mn in logistics startup Shiprocket for an 8% stake. The investment in Shiprocket is a part of a larger $185 round, which is likely to take the startup valuation at $800 Mn. Further, Zomato and Shiprocket will be launching a new service in Q4 FY22, a source close to the development had told Inc42.

Zomato has also picked a 16% stake in fintech Magicpin’s parent Samast Technologies for $50 Mn. The foodtech’s founder Deepinder Goyal was recently appointed as an independent director on the saving app platform.

According to the acquisition filing, the investment in Magicpin and Shiprocket are intended to help their respective business expansion.

Inc42 had previously reported the investments plans. A source had confirmed that the publicly listed foodtech is in talks to back over 6 consumer internet startups with cheque sizes between $50 Mn and $200 Mn.

Previously, Zomato has invested in grocery startup Grofers for a 10% stake and acquired the Indian business of Uber Eats.

According to the Q3 results declared by Zomato, its adjusted revenue during the quarter stood at $189 Mn, a 22.6% QoQ growth and a 144.9% YoY growth. Zomato’s net loss widened to $57.7 Mn for the quarter ending September 2021, against a loss of $30.8 Mn compared to the same period last year.

In the last few months, the company has shut down its subsidiary — Zomato Ireland Limited (Lebanon Branch). This followed its plans to shut down three of its international subsidiaries — Zomato UK Limited (ZUL), Zomato Media Private Limited (ZMPL) and Zomato US — formerly known as UrbanSpoon.

In August, the company also closed its US’ table reservation business — NexTable. It also pulled a plug on its online grocery business post the acquisition of Grofers, and simultaneously shut down its health and fitness products — Nutraceuticals. It has also postponed the launch of its restaurant loyalty programme, citing restrictions on dining out due to the pandemic.

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