Zomato has postponed its Board meeting on the Blinkit acquisition by one week

17 Jun 2022 , 08:51 AM

Zomato’s board meeting to approve the acquisition of rapid commerce business Blinkit has been postponed by a week because the food delivery unicorn wants to reassure significant shareholders.

The board was due to meet and approve the transaction on June 17, according to information discovered earlier this month.
Although Blinkit was valued at $700 million during the deal discussions, the final agreement is projected to be less valuable because it involves a stock swap of a specific number of shares in the ratio of 1:10, where Zomato would receive 10 shares of Blinkit for every one of its own.

In March of this year, Zomato gave cash-strapped Blinkit a lifeline with a $150 million loan to Grofers India Private Limited (GIPL). In a recent earnings call, the meal delivery firm stated that the complete sum had not been transferred and that the remaining funds will be distributed based on the company’s needs.

GIPL raised $100 million from Zomato in August of last year, giving the company unicorn status. That deal had gone through the CCI approval process.

According to one of the sources, Zomato will buy an Indian subsidiary of its parent business, Grofers International Pte Ltd, based in Singapore. In 2015, the corporation relocated its headquarters to a southeast Asian country with less stringent taxation requirements.

On the BSE, Zomato shares slid 4.55% to Rs67 on Thursday.