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 improvement was reported by TechCrunch on Tuesday, citing a supply conversant in 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 p.c stake in SoftBank-backed Blinkit for 518 crore.

Formerly often called Grofers, Blinkit rebranded itself late final yr as its CEO promised to hurry up deliveries of every little thing 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, affords the comfort of supply in 10 minutes, far decrease than the hours or days most opponents take.

Zomato in a regulatory filing to the Bombay Stock Exchange (BSE) stated that it had accredited 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 will likely be 12 p.c p.a. or increased with a tenure of no more than a yr.

“This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million (roughly Rs. 3,057 crore) cash in quick commerce in India over the next 2 years,” Zomato stated.

We have reached out to Zomato to know the specifics of its take care of Blinkit and this text will likely be up to date after we get a response.