Zomato acquires Blinkit, a struggling 10-minute grocery delivery startup, for Rs 4,447 crore in an all-stock deal. As the loss-making food delivery firm looks to broaden its offerings at a time when its shares are trading far below last year’s debut price and less than half of the all-time highs.
- The acquisition comes as a relief to Blinkit, which struggled to raise funds from new and most of its existing investors for several quarters.
- “Quick commerce has been our stated strategic priority since the last one year. We have seen this industry grow rapidly both in India and globally, as customers have found great value in quick delivery of groceries and other essentials, This business is also synergistic with our core food business, giving Zomato the right to win in the long-term… This foray into the next big category is timely as our existing food business is steadily growing towards profitability,” said Zomato CEO Deepinder Goyal.
- According to the deal terms, Blinkit’s SoftBank will receive 28.71 crore shares of Zomato, Tiger Global will get 12.34 crore shares, BCCL will receive 1.5 crore shares and DAOL will get 3.66 crore shares Sequoia’s shareholding in Zomato will rise from 1.33 crore shares to 5.84 crore shares as it will receive 4.51 crore new shares in the company.
- In August last year, Blinkit (then Grofers) had raised $100 million from Zomato in a round which gave the company a unicorn status.
