A source familiar with the situation told gaming-updates that food delivery company Zomato and instant delivery service Blinkit have agreed to merge. The stock deal values Blinkit at between $700 million and $750 million, said the source, who asked not to be named as it is a private matter.
The merger comes at a time when Blinkit has been trying to raise funds from outside investors for several quarters. The SoftBank-backed startup, formerly Grofers, switched to instant grocery delivery last year. The startup, which has raised almost $700 million and was last valued at over $1 billion, has struggled to compete with young and well-supported startup Swiggy, whose investors also include SoftBank and YC Continuity-backed Zepto. ,
Zomato, which is already an investor in Blinkit, was in talks with the young startup for a full acquisition last year, gaming-updates previously reported.
From our previous report:
The CEOs of Grofers and Zomato have been close friends for a long time and began exploring this investment earlier this year. Both companies are also open to the idea of acquiring a majority stake in Grofers in the coming quarters, although a decision has yet to be made and a thorough investigation will be carried out until Zomato goes public. a source told gaming-updates.
Zomato, which acquired Uber’s Indian food delivery business early last year, told some of its key investors that it sees a future in which the Gurgaon-based company expands beyond the food delivery segment, a source who asked not to be named said. continues. Private.
Both companies will need to obtain approval for the deal from the Competition Commission of India, India’s antitrust watchdog.
This is a history of development. Further…