Food delivery platform Zomato to acquire Blinkit in ₹4,447-cr. deal

Post the completion of the acquisition, Blinkit and Zomato apps would continue to exist separately

Online food delivery platform Zomato Ltd. on Friday said it will acquire Blink Commerce Pvt. Ltd. (formerly known as Grofers) for ₹4,447.48 crore in a share-swap deal as part of its strategy of investing in quick commerce business.

The company's board at a meeting held on Friday has approved the acquisition of up to 33,018 equity shares of Blink Commerce Pvt. Ltd. from its shareholders for a total purchase consideration of ₹4,447.48 crore at a price of ₹13.45 lakh per equity share, Zomato said in a regulatory filing.

Blink Commerce Pvt. Ltd. (BCPL) runs the online quick commerce service under the Blinkit brand. It was formerly known as Grofers.

This transaction will be carried out through issuance and allotment of up to 62.85 crore fully paid-up equity shares of Zomato, having face value of ₹1 each at a price of ₹70.76 per equity share on a preferential basis, it added.

The company already holds 1 equity share and 3,248 preference shares presently in BCPL, the filing said.

Explaining the rationale behind the proposed acquisition of Blinkit, in a letter to shareholders, Zomato Founder & CEO Deepinder Goyal said, "Quick commerce has been our stated strategic priority since the last one year.

"We have seen this industry grow rapidly both in India and globally, as customers have found great value in quick delivery of groceries and other essentials. This business is also synergistic with our core food business, giving Zomato the right to win in the long-term." He further said, "This foray into the next big category is timely as our existing food business is steadily growing towards profitability." On how Blinkit fits into the larger picture at Zomato, Mr. Goyal said Blinkit is also a hyperlocal business, just like food delivery and it also caters to a need for quick delivery of products for Zomato customers.