Zomato reports that Blinkit has reached a consolidation deal in an all-stock deal

Zomato has merged an all-stock with Blinkit that offers instant-delivery services priced between $ 700 million (about Rs 5,350 crore) and $ 750 million (about Rs 5,732 crore).

TechCrunch announced the development on Tuesday, citing a source familiar with the matter.

Zomato and Blinkit did not immediately respond to a request for comment.

The food-delivery company acquired a 9 per cent stake in Softbank-backed Blinkit in August worth over Rs 518 crore.

Formerly known as Grofers, Blinkit re-branded itself late last year as its CEO promised to expedite the delivery of everything from groceries to electronics in a growing market dominated by Walmart’s Flipkart and Amazon’s local unit.

The startup, which operates in more than 20 locations across India, offers 10 minutes of delivery, much less than most competitors’ time or days.

In a regulatory filing on the Bombay Stock Exchange (BSE), Zomato said it had approved a loan of up to $ 150 million (approximately Rs 1,145 crore) to Grofers (Blinkit) in one or more steps. The filing states that the interest rate on the loan will be 12 percent or more for a term not exceeding one year.

“This loan will support GIPL’s capital requirements in the near term and is in line with our stated intention to invest $ 400 million (approximately Rs 3,057 crore) in cash in fast trade in India over the next 2 years,” Zomato said. .

We have contacted Zomato to understand the specifics of his agreement with Blinkit and this article will be updated when we receive feedback.

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