Zomato, a popular food delivery startup based in India is all set to buy Fitso, a fitness startup based in Gurugram. The food delivery startup had earlier set up its base in India in the year 2008. Since then, it has expanded its operations by covering many parts of the country. Fitso had established its operations in the year 2015 and has been engaged in the rendering of membership access to sports facilities.
The value of Fitso is estimated to be USD 20 million and both the companies are in the process of finalizing the negotiation deal. However, there has not been any word on the deal coming in from both the companies. Last year Pankaj Chaddha, a co-founder of Zomato had invested in Zomato’s pre-Series A funding round that was worth about USD 1.5 million.
Although, the decision to acquire Fitso has been difficult to understand, especially at a stage when businesses are passing through a dull phase, including the food delivery business consistently performing below average. Fitso has even faced problems in laying off workers, including closing down its operations.
Fitso had been able to raise up to USD 1.7 million so far on completing five rounds of funding to date. Zomato is expected to start offering sports services, with the completion of this acquisition deal. The coronavirus pandemic has caused businesses to suffer badly and many of the businesses have been just trying to sustain during this period. It might be expected that the deal has been entered into by Zomato as part of its expansion plans and reach more consumers, although no official confirmation has come from Amazon or Fitso at the moment.
Zomato has raised funds to the tune of USD 62 million from Temasek Holdings, a Singapore based investor to date. Zomato had been valued at USD 3 billion at the time of undertaking the valuation of the deal.
Image Source: Zomato
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