Zomato To Acquire Blinkit In A Rs 4,447-Crore All-Stock Deal

Zomato Ltd. will buy quick grocery-delivery startup Blinkit for Rs 4,447 crore in an all-stock deal as the restaurant discovery and ordering platform enters the booming rapid commerce market.

The company will acquire up to 33,018 equity shares of Blink Commerce Pvt. (formerly known as Grofers), Zomato said in an exchange filing on Friday. And the company will issue and allot up to 62.85 crore fully paid-up equity shares at Rs 70.76 apiece to shareholders of Blinkit.

The deal, the company said, is in line with its strategy of investing in the quick commerce business. It's expected to be completed within 15 days of shareholders approving the special resolution.

Earlier this year, Zomato had extended a $150 million emergency loan facility to Blinkit, which was struggling to raise funds and had even shuttered few of its dark stores.

Why Blinkit?

Zomato's Chief Executive Officer Deepinder Goyal said in a statement that customers and data are clearly signaling the macro trend that people are moving to unplanned and spontaneous purchases.

"Monthly order frequency on Blinkit app was 3.5x in May 2022, which is higher than that of food delivery on Zomato," he said. Blinkit’s gross order value is fast catching up with Zomato’s in some key markets, indicating that quick commerce will add a significant new addressable market to its business in the long term, he said.

For now, Zomato and Blinkit brands will remain sperate, with Blinkit team run by founder Albinder Dhindsa.