Zomato acquires Blinkit for Rs 4,447 crore
Food delivery app Zomato’s board has approved its acquisition of quick commerce startup Blinkit for 4,447 crores in an all-stock deal. The transaction value is 40% lower than Blinkit’s last valuation of just over $1 billion. As per discussions held earlier, the deal was pegged at $700-750 million. Blinkit had become a unicorn or a privately held company with a valuation of $1 billion or more, last year following a $120 million funding round from Zomato and New York-based investment firm Tiger Global. In total, Blinkit has raised $692 million so far from investors including Japan’s SoftBank, DST Global, and Tiger Global, according to data from industry tracker Tracxn. Zomato currently holds about 9% in Blinkit. According to the deal, the shareholders of Blinkit will get about 7% in Zomato at 70.76 per share. The transaction is expected to close by early August, Zomato informed BSE after its board meeting on Friday. It is subject to customary shareholder and stock exchange approval, chief financial officer Akshant Goyal said in a letter to shareholders. “This foray into the next big category is timely as our existing food business is steadily growing towards profitability,” Zomato’s founder and chief executive Deepinder Goyal said. “We are very conscious that we do not have to overpay for any M&A, and we have strong governance processes. We will follow the process and not make any mistake on that front,” HE ADDED
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