Zomato’s board of directors approved the online grocery store acquisition Blinkit (formerly Grofers) in an all-stock deal at the board meeting, according to BSE filings. The long-awaited deal will help Zomato, which has grown in price on fast commerce, strengthens its position significantly in the vibrant, ultrafast grocery delivery space. This is all about the deal
What is the value of the deal?
The deal is worth Rs 4,447 crore or almost USD 570 million. It is nearly 43% below Blinkit’s most recent valuation of more than $1 billion. Blinkit becomes unicorn in 2021 after $120 million funding from Zomato and Tiger Global.
What does the BSE profile say
In the BSE filing, Zomato said that its board approved the repurchase of up to 33,018 equity shares of the company. Blink Commerce Private Limitedformerly known as Grofers India Private Limited to consider purchasing a total of Rs 4447,47,84,078 at a price of Rs 13,46,986.01 per equity share by issuing and allocating up to 62,85,30,012 shares of the company’s paid off shares. has a denomination of Rs 1 each.
How to start trading
Zomato began negotiations to acquire Blinkit, then Grofers, in April 2020. In June 2021, Grofers raised 120 million from Zomato and Tiger Global to become a unicorn.
Founder of Zomato and executive director Deepinder Goyalletter to shareholders
In a letter to shareholders, Zomato Founder and CEO Deepinder Goyal said, “Fast commerce has been our stated strategic priority since the past year or so. We’ve seen this industry before. growing rapidly both in India and globally, as customers quickly found great value delivering groceries and other essential items.This business also incorporates a food business. our core, giving Zomato the right to win in the long term.” He added, “This foray into the next big category is timely given that our current food business is taking a hit. steadily growing in a profitable direction.”
What about Zomato and Blinkit . apps
Goyal says that the Blinkit and Zomato apps will continue to exist separately.
(With input from agencies)