The United States’ largest company in the online retail industry, Target, announced Monday it has bought 100 million shares of the online grocery chain Zomato, which has grown into one of the biggest and most profitable businesses in India.
Zomato was founded in 2013 by entrepreneur and billionaire Shazad Milani and has been growing its business rapidly in recent years.
It has also developed the Zomatron grocery delivery service, which offers grocery deliveries in over 100 countries.
The Zomatos $200 million purchase was the largest transaction for Target in India in recent memory, as it bought Zomatoes $300 million worth of shares in October 2016.
Target’s move is likely to boost Zomats sales by up to 50% in the second half of 2018, Target Chief Executive Officer Michael Williams told reporters on a call.ZOMATS revenue is estimated at $1.8 billion.
Zomots growth in 2018 will come largely from expanding its presence in India through direct-to-consumer retailing and a $1 billion acquisition of Zomattos mobile payment service, Williams said.
Zomboid, Zomatrons best-selling app, has also received significant attention as a result of the acquisition.
Zomboid has become a top-grossing app in India as well as a leader in social media sales, as Zomotans followers are growing by almost 50% per month in India alone, according to an estimate by app analytics company Net Applications.
Zobots revenue in 2018 was $1,879 million, according the firm.
Zoomatys best-seller has also been the most downloaded app in the country.