Zomato to acquire grocery delivery platform Blinkit for ₹4,447 Cr | 5 points - Hindustan Times
close_game
close_game

Zomato to acquire grocery delivery platform Blinkit for over 4,440 Cr | 5 points

Jun 25, 2022 08:30 AM IST

Blinkit was one of the more than 40 unicorns - or startups valued at more than $1 billion, created in India last year.

Zomato, the popular online food delivery platform is going to acquire online grocery delivery firm Blinkit, news agency Bloomberg reported on Friday.

Zomato has previously invested in Blinkit in August last year. (file)
Zomato has previously invested in Blinkit in August last year. (file)

Zomato - backed by Sequoia Capital and Jack Ma’s Ant Group among others - expects the market for quick deliveries to extend exponentially to include categories such as beauty and personal care, electronics, over-the-counter pharmaceuticals and stationery. It expects that demand for quick deliveries will grow in large Indian cities in the long term.

Hindustan Times - your fastest source for breaking news! Read now.

Here’s what we know about the deal so far

> The deal is worth 4,447 crore (about $570 million), said Bloomberg. This will be paid by Zomato in the form of shares in the parent company. However, it is still not clear whether it will be an ‘all-stock’ deal or not. It is being reported that the shareholders of Blinkit will get a roughly 7 per cent stake in Zomato at 70.76 per share.

> Blinkit - known for quick deliveries of groceries and essentials - is owned & managed by ‘Blink Commerce Private Limited’ which was formerly known as Grofers India Private Limited. Grofers essentially rebranded itself as ‘Blinkit’ as its CEO promised to speed up deliveries of everything from groceries to electronics, in a market dominated by e-commerce giants Flipkart and Amazon.

> Blinkit was one of the more than 40 unicorns - or startups valued at more than $1 billion, created in India last year, a report by Livemint said.

> Zomato has previously invested in Blinkit in August last year, extending a loan of over $100 million for the quick-commerce entity. Zomato currently owns 9 per cent of the stakes in Blinkit and plans to keep the Blinkit app separate from the Zomato app after acquisition.

> “The acquisition of Blinkit’s tech platform, scale of business, third party brands and sellers, and its network of warehouses will help save costs for Zomato,” Chief Executive Officer Deepinder Goyal was quoted as saying by Bloomberg.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On