Zomato nears all-stock takeover for Blinkit
Zomato was among the first generation of internet unicorns to tap India’s capital market after its $1.3 billion initial public offering in July.
India’s online food delivery platform Zomato Ltd. is nearing an all-stock deal to take over instant grocery delivery service Blinkit, according to people familiar with the matter.
The companies are at an advanced stage discussing the deal structure, said the people, who asked not to be identified as the information is private. They will seek clearance from the country’s antitrust regulator in the coming weeks, one of the people added. Talks could still be delayed or fall apart, the people said.
Representatives for Blinkit and Zomato didn’t immediately respond to requests for comment. The Economic Times reported the merger talks earlier on Tuesday.
The proposed takeover would come soon after Zomato chipped in an additional $100 million into Blinkit, formerly known as Grofers. Zomato was among the first generation of internet unicorns to tap India’s capital market after its $1.3 billion initial public offering in July. The stock closed at 76.55 rupees a share on Tuesday, just a shade above its IPO price of 76 rupees, after touching an all-time high of 160.3 rupees in November.