New Delhi: Fund-strapped online grocery delivery company Blinkit will now merge with online food delivery company Zomato. Both the companies have entered into an agreement for mutual merger. This deal will be completely stock based. In July last year, Blinkit (earlier Grofers) raised $100 million from Zomato by selling its 10 percent stake.
The merger comes at a time when Blinkit has laid off employees, closed stores and delayed payments to some vendors amid increasing competition in the market. Recently there were reports in the media that Zomato is going to give a loan of $ 75-100 million to the cash-strapped Blinkit.
$700 million value
Sources said the deal is likely to be around $700 million, lower than Blinkit’s valuation last time. Last time it was valued at one billion dollars. Blinkit had raised $100 million from Zomato at the same valuation. This gave the company the status of a unicorn. Zomato will soon contact the Competition Commission of India to get approval for this merger agreement.
Last month, Blinkit signed an agreement to take a loan of $10 million from Innoven Capital, which is to be received by the company in three installments. The first installment of these has been received. Blinkit has recently laid off staff from segments like Riders, Pickers and Store Managers from Mumbai, Hyderabad and Kolkata. The company currently has a payroll staff of over 2,000 people and a ground staff of 30,000 people.
Tags: Deals of the Day, Online Order, Zomato
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