Unicorns turn into strategic investors; Zomato grabs a big pie

Byju's, Flipkart, PharmEasy and CRED, among others, have taken the acquisition route to grow

Even as startups in India continue to attract investors and take their valuations higher, several unicorns are now becoming strategic investors themselves and picking up stakes in smaller companies.

In 2021 restaurant aggregator and food delivery company Zomato led the pack by investing in five startups, including Curefit, Grofers, Shiprocket and Magicpin. The other player that has been buying minority stakes in smaller startups is Rebel Foods, a cloud kitchen company. It has invested in four startups, including Goodness Beverages, FoodyBuddy and Zomoz.

Explaining his rationale for picking up strategic stakes in smaller startups, Deepinder Goyal, founder of Zomato, wrote