MUMBAI: Foodtech major Zomato, which has been in talks to acquire full-stack sports platform Fitso since September, has reportedly closed the deal for a 100% stake in the Gurugram-based company at a price of Rs 800 million to Rs 1 billion.
This is the first acquisition by Zomato it bought out UberEats in January 2020.
“The deal has been internally announced by Zomato. Fitso’s team along with its co-founders will join Zomato,” one of the sources close to the developments told entrackr.com reports.
When the reports of buyout talks first surfaced last September, the cash-and-stock transaction had reportedly valued Fitso, a five-year-old Gurugram-based company, at roughly $20 million.
“The size of the deal is in the range of Rs 80-100 crore (Rs 800 million to Rs 1 billion),” a second source told entrackr. “The transaction consists of both equity and cash.”
Fitso, which started out as a partner-finding app for runners and cyclists, now offers enthusiasts a way to engage in sporting activities such as swimming, basketball and tennis, among others. Using its subscription model, users on the platform can choose a sport and book a time slot at their nearest facility.
Since its inception in 2015, Fitso has raised $1.7 million from SRI Capital, Pankaj Chaddah, Helion Ventures’ founder Ashish Gupta and AppyHigh.
Sources emphasised that the acquisition would help Zomato get into the fitness space. “It appears to be a smart move by Zomato as most of its users are millennials who can be potential takers of Fitso’s offerings,” said the person quoted above.
The acquisition of Fitso by Zomato has come a month after it had closed a $600 million financing round at a valuation of $3.9 billion. The company is also preparing for a public listing later this year.
According to Fintrackr, the company’s losses grew 2.4X to Rs 2,385.6 crore in FY20. The online food delivery major also registered a 98.4% surge in its collections to Rs 2,605 crore in FY20 from Rs 1312.6 crore in FY19.
