Zomato to acquire Blinkit for $578 million: Check details here

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Zomato’s board has approved the acquisition of quick-commerce company Blinkit for Rs 4,447 crore ($567 million) in an all-stock deal. As a part of the deal, Zomato will acquire 33,018 equity shares of Blink Commerce Private Limited (BCPL) at a prescribed preferential allotment price of Rs 70.76 per share. The transaction will be done by issuing approximately 629 million Zomato shares on a fully diluted basis.

Besides acquiring Blinkit’s commerce business, Zomato will also acquire its warehousing business, Hands On Trade Private Limited (HOTPL), for Rs 607 million (about $8 million) in cash. However, the food-aggregator will not take over B2B trading business of Blinkit.

The deal is expected to close in August 2022, subject to regulatory approval and approval by shareholders.

Zomato CEO Deepinder Goyal said, “We are proposing to acquire Blinkit, an accelerated commerce business in India and where we first invested in August last year.” wrote in one post.

“This entry into the next big category is timely as our existing food business continues to grow towards profitability – Zomato has grown at a CAGR of 86 per cent over the past 4 years to reach Adjusted Revenue of 55.4 Billion ($710 Million), while has been adjusted. The EBITDA margin has increased from (153%) in FY19 to (18%) in FY22,” he said.

What Happens to Blinkit After Acquisition?

As far as what will happen to Blinkit once the deal is confirmed, the Zomato CEO has a Q&A page which states that the company will keep the Blinkit app and Zomato separate. “The Zomato brand stands for ‘food’ everything in the minds of customers, while Blinkit is well on its way to becoming a brand that customers associate with grocery and essential supplies,” he wrote.

However, the company will ‘experiment with different ideas’ that will enable interoperability between the two apps. “We will explore ways in which Blinkit can benefit from Zomato’s large customer base (and vice versa in the long term). After the deal closes, we are going to start experimenting with different ideas that we have and see all bear fruit including the Blinkit tab on the Zomato app,” he added, adding that the Blinkit team led by CEO Albinder Dhindsa continues. Business will continue.

Zomato Post To Acquire Blinkit For $578 Million: Check Details Here First appeared on BGR India.



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