Zomato to acquire quick commerce firm Blinkit for £463m
A Zomato deliveryman in Mumbai, India. (Photo by INDRANIL MUKHERJEE/AFP via Getty Images)
THE Board of Directors of food delivery company Zomato Limited on Friday approved a proposal to acquire cash-strapped quick commerce company Blinkit for Rs 4,447 crore (£463 million). It will be an all-stock deal.
In a regulatory filing to the stock exchange, Zomato said its board has approved the acquisition of up to 33,018 equity shares of Blink Commerce Private Limited, formerly known as Grofers India Private Limited for a total purchase consideration of Rs 4447,47,84,078 (£463.4 million) at a price of Rs 13,46,986.01 (£14,035) per equity share by issuance and allotment of up to 62,85,30,012 fully paid-up equity shares of the Company having face value of Re 1 each (£0.01).
Last year, Zomato had extended $150 million (£122.3 million) loan to Grofers India Private Limited, which has now been renamed as Blink Commerce Private Limited.
The share price of Zomato Limited rose 1.15 per cent to Rs 70.35 (£0.73). The company made the announcement after the closing of the trading session.