Zomato board approves Blinkit buy: Value of the deal, letter to shareholders and more – Times of India

Zomato’s board of directors has approved the acquisition of online grocery store Blinkit (formerly Grofers) in an all-stock deal at a board meeting, according to a BSE filing. The long-anticipated deal will help Zomato, which has been bullish on quick commerce, strengthen its position significantly in the buzzy, ultra-fast grocery delivery space. Here’s all about the deal
What is the value of the deal
The deal is valued at Rs 4,447 crore or close to $570 million. It is close to 43% lower than Blinkit’s last valuation of just over $1 billion. Blinkit became a unicorn in 2021 following a $120-million funding from Zomato and Tiger Global.
What does the BSE filing say
In the BSE filing, Zomato said that its board has approved the acquisition of up to 33,018 equity shares of Blink Commerce Private Limited, formerly known as Grofers India Private Limited for a total purchase consideration of Rs 4447,47,84,078 at a price of Rs 13,46,986.01 per equity share by issuance and allotment of up to 62,85,30,012 fully paid-up equity shares of the company having face value of Rs 1 each.
How the deal started
Zomato started talks to acquire Blinkit, then Grofers, in April 2020. In June 2021, Grofers raise 120 million from Zomato and Tiger Global to become a unicorn.
Zomato founder and CEO Deepinder Goyal‘s letter to shareholders
In a letter to shareholders, Zomato Founder and CEO Deepinder Goyal said, “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.” He added, “This foray into the next big category is timely as our existing food business is steadily growing towards profitability.”
What about Zomato and Blinkit apps
Goyal said that the Blinkit and Zomato apps will continue to exist separately.
(With inputs from agencies)