Zomato Signs Merger Deal With Blinkit: Report
Zomato had acquired a more than 9 percent stake in SoftBank-backed Blinkit for 5.18 billion rupees ($67.77 million) in August last year.
New Delhi: Food delivery firm Zomato and online shopping platform, Blinkit have signed a merger deal, reported TechCrunch on Tuesday quoting a source familiar with the matter.
Zomato had acquired a more than 9 percent stake in SoftBank-backed Blinkit for 5.18 billion rupees ($67.77 million) in August last year.
The instant delivery service startup earlier known as Grofers, Blinkit rebranded itself late last year after its CEO promised accelerating deliveries of everything from groceries to electronics among dominant players like Walmart's Flipkart and Amazon's local unit.
Niether Zomato nor Blinkit have responded to the development yet.
In a stock filing on Tuesday, Zomato stated that it will invest $150 million in debt to rescue cash strapped Blinkit , reported Money Control.
"This loan will support the capital requirements of GIPL in the near tern and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next two years," quoted Money Control as Zomato said.
Operating across 20 locations in India, Blinkit offers the convinience of delivery within 10 minutes which is far lower than the hours or days taken by its competitors.
In its latest earning report, Zomato had stated that it would spend as much as $400 million on potential investements in the quick commrece market over the next two years.
Blinkit, back then Grofers in August 2021 had entered the unicorn club after it had succesfully raised $120 million from food delivery startup, Zomato.
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