Zomato rescues Blinkit, signs up for merger in all stock deal
Online food delivery firm Zomato and online grocer Blinkit has signed up for a merger in an all stock deal which is likely to be at a down round for a valuation of $700 million, sources privy to the development.

Zomato rescues Blinkit, signs up for merger in all stock deal
Online food delivery firm Zomato and online grocer Blinkit has signed up for a merger in an all stock deal which is likely to be at a down round for a valuation of $700 million, sources privy to the development. Blinkit last raised $100 million from Zomato in a round which gave the company a unicorn status.
The deal signals towards the beginning of a consolidation in the quick commerce space in India.
The public listed food-tech firm will be approaching the Competition Commission of India for an approval soon. Following the stock swap, Blinkit's lead investor Softbank will get around 4 percent stake in Zomato. It must be noted that Softbank already is an investor in rival Swiggy.
The development happens at a time when Blinkit has laid off employees, shuttered dark stores, and delayed some vendor payments, amid intense competition in the quick commerce space.
Zomato's last investment in Blinkit happened for a 10 percent stake at a valuation of a billion dollar just before its initial public offering in July last year. While Blinkit was supposed to raise a further $500 million from Zomato, this hasn't materialised due to current market conditions, where new-age tech stocks have been hammered.