Zomato, the popular online food delivery platform is going to acquire online grocery delivery firm Blinkit, reported on Friday.
The deal is worth ₹4,447 crore (about $570 million) 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. Probably 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 rebranded 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.
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.