Zomato board approves the acquisition of Blinkit for Rs 4,447 crore
- ByStartupStory | June 25, 2022
Zomato announced the purchase of Blinkit for Rs 4,447 crore in an all-stock transaction. The board has authorised the purchase of up to 33,018 equity shares of Blink Commerce Pvt Ltd from its shareholders for a total purchase price of Rs 4,447.48 crore, or $13.45 lakh per equity share.
This transaction would be completed by the issuing and allocation of up to 62.85 crore fully paid-up equity shares of Zomato, each having a face value of Rs. 1 at a cost of Rs. 70.76 apiece. This acquisition fits with the firm’s objective of making investments in the rapid commerce sector. The company granted a grant of a loan up to $150 million to Blinkit, previously Grofers, in one or more tranches in March of this year.
Zomato Founder & CEO Deepinder Goyal stated, “Quick commerce has been our declared strategic focus during the previous year. Customers have found significant value in receiving groceries and other necessities quickly delivered, which has led to this industry’s rapid growth both in India and internationally. Zomato has the potential to succeed over the long run since this industry works well with our main food business.” He also said, “Our current food business is progressively advancing toward profitability, so this venture into the next large area is opportune.”
The SoftBank Group-backed company Blinkit, formerly known as Grofers, changed its name in the latter part of last year as its CEO pledged to speed up delivery of everything from groceries to electronics in a developing market dominated by Walmart’s Flipkart and Amazon’s local unit. Blinkit delivers milk, fruits, and veggies, to gadgets in more than 20 Indian cities.
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