Zomato, Blinkit Said to Have Reached Merger Agreement

Zomato has reportedly reached an all-stock merger with Blinkit that values the instant-delivery service between $700 million (roughly Rs. 5,350 crore) and $750 million (roughly Rs. 5,732 crore)

The event was reported by TechCrunch on Tuesday, citing a supply accustomed to the matter.

Zomato and Blinkit didn’t instantly reply to Reuters requests for remark.

The food-delivery firm in August acquired a greater than 9 % stake in SoftBank-backed Blinkit for 518 crore.

Previously often called Grofers, Blinkit rebranded itself late final yr as its CEO promised to hurry up deliveries of every part from groceries to electronics in a burgeoning market dominated by Walmart’s Flipkart and Amazon’s native unit.

The startup, which operates in additional than 20 areas throughout India, presents the comfort of supply in 10 minutes, far decrease than the hours or days most rivals take.

Zomato in a regulatory filing to the Bombay Inventory Trade (BSE) stated that it had permitted a mortgage of as much as $150 million (roughly Rs. 1,145 crore) to Grofers (Blinkit) in a number of tranches. The submitting says the rate of interest for the mortgage shall be 12 % p.a. or greater with a tenure of no more than a yr.

“This mortgage will assist the capital necessities of GIPL within the close to time period and is in keeping with our said intent of investing as much as $400 million (roughly Rs. 3,057 crore) money in fast commerce in India over the subsequent 2 years,” Zomato stated.

We now have reached out to Zomato to know the specifics of its cope with Blinkit and this text shall be up to date after we get a response.