Zomato and Blinkit acquisition on June 17

Zomato is scheduled to have a board meeting on June 17. It is set to acquire the quick commerce company Blinkit. Currently, Zomato has a share of around ten percent in the company. It was also mentioned earlier that their stake will increase in the company. With this acquisition, both the companies will be benefited. 

According to earlier discussion reports, the deal valued Blinkit at $700 million but it is expected to lower as the company’s share has reduced. Up to date, Zomato has invested $100 million in Blinkit and is planning to invest $400 million. The ratio for stock swap was stated as 1:10, where Zomato will get 10 shares of Blinkit per its share. 

Zomato

A popular food delivering company started in 2008. It is known for its fast and reliable service and is available in almost all cities in India. The company is famous for its marketing strategies as well as acquisitions in the market. It has acquired twelve companies national and international. The list includes Uber Eats, Maple Graph, Tech Eagle, Grofers, etc. The company has national and international stakeholders and excellent management. 

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Blinkit

Formerly known as Grofers, the company was founded in 2013 based in Gurgaon. The company is famous for delivery service in under 10 minutes. Currently, it is operating in more than 30 cities in India and plans to expand further. It is recorded that the company completes over one lakh orders daily. Up to date, the company has raised $630 million. The stakeholders include Soft bank, Sequoia Capital, and Tiger Global. With the new acquisition deal, the company is expected to improve its network and reach. 

With this new deal both the companies are looking forward to not just monetary benefits but other benefits as well. Both are leading companies in delivery service and have a scope to grow together. Looking at the current positions, the deal is expected to be signed. The board meeting is scheduled for June 17 and the results will mark a new journey for both the companies.