Zomato Board approves Blinkit purchase: deal value, letter to shareholders and more

Zomato’s board of directors has approved the acquisition of the online grocery store Blinkit (Previously Grofers) In an all-stock deal at a board meeting, according to BSE filing. The long-awaited deal will help Zomato, Which is booming on fast commerce, significantly strengthens its position in the very busy, ultra-fast grocery delivery space. Here’s everything about deals
What is the cost of the deal
The deal is worth Rs. 4,447 crore or close to 570 million. That’s close to 43% of Blinkit’s last valuation of just $ 1 billion. Blinkit became Unicorn in 2021 after $ 120-million funding from Zomato and Tiger Global.
What BSE Filing Says
In the BSE filing, Zomato said its board has approved the acquisition of up to 33,018 equity shares. Blink Commerce PvtFormerly known as Grofers India Pvt Rs. 62,85,30,012 fully paid-up equity shares of a company with a face value of Rs. 13,46,986.01 per equity share price of Rs. A total purchase of 4447,47,84,078 each for consideration
How the deal started
Zomato began negotiations in April 2020 to acquire Blinkit, then Grofers. In June 2021, Grofers raised 120 120 million from Zomato and Tiger Global to become a unicorn.
Zomato founder And CEO Dipendra GoyalLetter to shareholders
In a letter to shareholders, Deepinder Goyal, founder and CEO of Zomato, said, “Quick commerce has been our strategic priority for the past one year. Delivery of essentials. This business is also synergistic with our core food business, giving Zomato the right to win in the long run. ” He added, “This raid in the next big category is timely as our current food business is steadily moving towards profitability.”
What about Zomato and Blinkit apps?
Goyle said the Blinkit and Zomato apps will exist separately.
(With agency inputs)

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