The biggest hyper-local consolidation? – Trak.in – Indian Business of Tech, Mobile & Startups

Publicly listed company Zomato has signed a merger agreement with Blinkit in an all-stock transaction.

Online food aggregator Zomato has reportedly signed a merger deal with instant delivery services company Blinkit, formerly Grofers, and the deal is expected to be all-stock, likely to have a $700 million valuation.

According to sources, Zomato will approach India’s Competition Commission to seek approval for the deal with Blinkit soon.

Details of the “all stock” agreement between Zomato and Blinkit are given below.

Zomato-Blinkit merger

Publicly listed Zomato has signed a merger agreement with Blinkit in an all-stock deal, attracting a likely valuation of $700 million, a Moneycontrol report cited.

Zomato will approach the CCI to get an approval on the same.

Additionally, once the stock exchange is completed, Softbank, which is Blinkit’s largest investor, will own a 4% stake in Zomato. Softbank is also an investor in Zomato’s rival company, Swiggy.

The food delivery company could provide a loan of up to $75 million to $100 million to beleaguered Blinkit, as the latter has laid off around 5% of its entire workforce since the start of the Covid-19 pandemic. 19.

The company has laid off staff from its regions including Mumbai, Hyderabad and Kolkata in different segments such as delivery people, pickers and store managers.

At present, the company has more than 2,000 employees and around 30,000 on the ground, Noted The report.

The said agreement between the two new-era digital companies comes at a time when Blinkit has not only laid off a large number of employees, but also delayed payment to some suppliers and closed its stores, amidst losses and the growing competition in fast trading. space out.

In July 2021, Zomato invested in Blinkit to acquire a 10% stake at a valuation of $1 billion. This was just before the launch of Zomato’s IPO on Indian stock exchanges.

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