Food delivery company Zomato is going to make a deal worth billions. The approval for this has been obtained from the board of the company. Zomato has signed a deal to buy all the shares of quick commerce company Blinkit for Rs 4,447 crore. It has been approved by the board on Friday. In addition, Zomato’s restaurant supply subsidiary Hyperpure will also acquire the warehousing and ancillary services business of Hands on Trade Private Limited for Rs 60.7 crore.
The deal was estimated to cost Blinkit more than $700 million, but a sharp drop in Zomato’s shares reduced its deal to $568 million.
Deepinder Goyal, CEO, Zomato, said, “The Quick Commerce business has been our stated strategic priority for the past one year. We have seen this industry grow rapidly in India and globally as customers have found great value in quick delivery of groceries and other essentials. He said that this business will give a boost to our core food business. He said that it is time to time the next big category as our existing food business continues to grow towards profitability.
whom how many shares
It is worth mentioning that Blinkit has done a business of Rs 263 crore in FY 2012, Rs 200 crore in FY 2011 and Rs 165 crore in FY 2010. As per the terms of the deal, Blinkit’s largest shareholder SoftBank will get 28.71 million shares of Zomato, Tiger Global will get 12.34 million shares, BCCL 15 million shares and South Korean investor DAOL will get 366 million shares.
Zomato $100 Million
Sequoia’s stake in Zomato will increase from 1.33 crore shares to 5.84 crore shares as it will get 4.51 crore new shares in the company. In August last year, Blinkit (then Grofers) raised $100 million from Zomato in a round, giving the company unicorn status.
Full amount not yet given
Subsequently, Zomato had also raised the cash-strapped blinkit limit through a $150 million loan to parent company Grofers India Private Limited (GIPL). The food delivery company recently said in its earnings call that the entire amount has not been disbursed, and the rest will be given to the company based on its requirement.
jump in shares
For Zomato, Blinkit is a final attempt to enter the grocery space after twice backing out of the segment in 2020 and 2021. Last year, the company said that its future bets on the grocery space would be through its investments. After the discussion of this deal, the stock of Zomato rose 1.15 per cent to Rs 70.35 on BSE on Friday.