Foodtech major Zomato has acquired a 100% stake in full-stack sports platform Fitso, according to three people aware of the details of the transaction. This is the first acquisition by Zomato after UberEats was bought by the Gurugram-based company in January 2020.
“The deal has been internally announced by Zomato. Fitso’s team along with its co-founders will join Zomato,” said one of the sources on condition of anonymity.
Fitso 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.
Sources emphasized 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 this year. An initial public offering or IPO in India is unlikely as Zomato is still not near profitability.