The famous online meal delivery network Zomato will buy the online grocery delivery business Blinkit.
Zomato, which is funded by Sequoia Capital and Jack Ma's Ant Group, anticipates the market for rapid delivery to grow exponentially, expanding into areas like cosmetics and personal care, electronics, over-the-counter medications, and stationery. It anticipates that demand for speedy delivery would increase in significant Indian cities over time.
According to Bloomberg, the transaction is valued at Rs 4,447 crore (about $570 million). Zomato will pay this in the form of parent company shares. However, it is unclear if the transaction will be "all-stock." According to reports, Blinkit owners would receive a 7% investment in Zomato for $70.76 a share.
Blinkit, recognized for its speedy deliveries of food and necessities, is owned and operated by 'Blink Commerce Private Limited,' formerly known as Grofers India Private Limited. Grofers effectively relaunched as 'Blinkit,' with its CEO promising to speed up deliveries of everything from groceries to gadgets in a sector dominated by e-commerce behemoths Flipkart and Amazon.
According to a Livemint article, Blinkit was one of more than 40 unicorns - or firms valued at more than $1 billion - founded in India last year.
Zomato previously invested in Blinkit in August of last year, offering a loan of more than $100 million to the fast-commerce company. Zomato presently owns 9% of Blinkit and intends to keep the Blinkit app distinct from the Zomato app following purchase.
“The acquisition of Blinkit’s tech platform, the scale of business, third party brands and sellers, and its network of warehouses will help save costs for Zomato,” Chief Executive Officer Deepinder Goyal stated.