Blinkit, formerly known as Grofers, is now set to be merged with the food delivery giant Zomato. This comes at a time when Blinkit was in financial distress.
Blinkit has had to fire employees, delay vendor payments and shut dark stores due to cut throat competition from other rivals in the q-commerce sector. It has seen substantial loss in its manpower in an attempt to cut costs and has raised funding several times in the past few months.
The deal is an all stock deal wherein Softbank, the lead investor in Blinkit, will get around 4% in Zomato. An interesting fact is that Softbank is already an investor in Swiggy.
The deal is said to be at a valuation of $700 million. Zomato, being a listed entity, will be approaching the Competition Commission of India to get it’s approval. Zomato has previously invested in Blinkit for a 10% stake at a cost of $1 billion.
Highlight by Aman Agarwal.