Zomato to acquire Blinkit in Rs 4,447 crore share-swap deal

27 Jun 2022 , 10:37 AM

Blink Commerce runs the online quick commerce service under the Blinkit brand. It was formerly known as Grofers. The companys turnover as at 31 March 2022 was Rs 236.32 crore. Zomato will acquire up to 33,018 equity shares of Blink Commerce from its shareholders at a price of Rs 13,46,986.01 per equity share, for a total purchase consideration of Rs 4447,47,84,078. This transaction will be carried out through issuance and allotment of up to 62,85,30,012 fully paid-up equity shares of Zomato, having face value of Rs 1 each at a price of Rs 70.76 per equity share on a preferential basis, it added. Zomato already holds 1 equity share and 3,248 preference shares presently in Blink Commerce. Zomato founder & 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. We are proposing to acquire Blinkit, a quick commerce business in India and where we first invested in August last year. This foray into the next big category is timely as our existing food business is steadily growing towards profitability.? On the rationale for the said acquisition, the Zomato CEO said that Blinkit is also a hyperlocal business, just like food delivery. And, because it also caters to a need for quick delivery of products for its customers. Quick commerce will help the company increase the customer wallet share spent on its platform and also drive higher frequency and engagement from its customers. Zomato offers services like restaurants discovery and reviews, home delivery of food, online table reservation, and digital payments when dining out. It also works with restaurant partners to provide tools that enable them to engage and acquire more customers while empowering them with a last-mile delivery service and a one-stop procurement solution - Hyperpure, for ingredients and kitchen products. On a consolidated basis, Zomatos net loss widened to Rs 359.70 crore in Q4 March 2022 compared with net loss of Rs 134.20 crore in the corresponding quarter last year. Revenue from operations came in at Rs 1,211.80 crore, rising 75.01% compared to Rs 692.40 crore in the same quarter last year. Shares of Zomato rose 0.28% to currently trade at Rs 70.55 on the BSE. Powered by Capital Market - Live News