Zomato to grant $150 million loan to cash strapped Blinkit

16 Mar 2022 , 09:31 AM

The Board of Directors of Zomato Limited has approved a grant of loan up to a value of US$150 million to Grofers India Private Limited (Blinkit). The loan shall be extended in one or more tranches and the senior management of the Company has been authorized by the board to decide the key terms of the loan and execute the definitive documents at a future date.

As per the terms, the interest rate shall be 12% or higher with a tenor of not more than 1 year.

Blinkit will use this loan to support its capital requirements in the near term and is in line with Zomato’s stated intent of investing up to $400 million cash in quick commerce in India over the next 2 years.

Zomato holds about a 9% stake in GIPL as of now.

Zomato is currently trading at Rs75.90 down by Rs0.7 or 0.91% from its previous closing of Rs76.60 on the BSE. It has touched an intraday high and low of Rs79.95 and Rs75.55 respectively.