The purchase of rapid commerce business Blinkit for Rs 4,447 crore in an all-stock deal was authorised by the board of food delivery company Zomato on June 24.
Additionally, Hands on Trade Private Limited’s storage and auxiliary services company will be purchased by Hyperpure, a subsidiary of Zomato that sells restaurant supplies, for Rs 60.7 crore.
The Blinkit deal’s value was once believed to be around $700 million, but at the current exchange rate, it is only worth $568 million due to the decline in Zomato’s stock price.
“Since the last year, “quick commerce” has been our stated strategic focus. Since customers have found significant value in speedy delivery of groceries and other necessities, we have watched this industry grow rapidly both in India and worldwide,” said Zomato CEO Deepinder Goyal.
Zomato has a chance to succeed in the long run because this industry works well with our core food business. Our current food business is steadily developing toward profitability, so this entry into the next big area is timely,” he continued.
Blinkit’s yearly revenue for the previous three fiscal years was also disclosed in the filing: Rs 263 crore in FY22, Rs 200 crore in FY21, and Rs 165 crore in FY20.
In accordance with the terms of the agreement, SoftBank, the largest shareholder in Blinkit, would receive 28.71 crore Zomato shares, followed by Tiger Global with 12.34 crore, BCCL with 1.5 crore, and South Korean investor DAOL with 3.66 crore.
Sequoia will receive 4.51 crore additional shares in Zomato, increasing its ownership in the company from 1.33 crore to 5.84 crore shares.
Blinkit (formerly Grofers) received $100 million from Zomato in a funding round in August of last year, elevating the business to unicorn status.
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