Zomato said it would acquire up to 33,018 equity shares of Blink Commerce Pvt Ltd from its shareholders for a total purchase consideration of Rs 4,447.48 crore at a price of Rs 13.45 lakh per equity share. The decision was taken at a board meeting today. “This acquisition is in line with our strategy of investing in the quick commerce business,”
Zomato said, adding that the transaction would be carried out through issuance and allotment of up to 62.85 crore fully paid-up equity shares of Zomato, having face value of Re 1 each at a price of Rs 70.76 per equity share.
already holds one equity share and 3,248 preference shares, presently in the online quick commerce startup.
Zomato said it would also buy the warehousing and ancillary services business from Blinkit’s parent company Grofers International for Rs 60.7 crore.
Last year, Zomato had bought a 10 per cent stake in Blinkit for about $100 million. In a recent report, global brokerage HSBC had said building a grocery business will work as a “poison pill” for Zomato. It would need reasonably high investment and hence cash burn and is likely to be a significant logistical challenge to execute as well, it added.
From a 52-week high of Rs 169, Zomato shares are down 58 per cent. In the March quarter, the food delivery platform had reported that its consolidated net loss for the quarter widened to Rs 359.7 crore compared to Rs 134.2 crore in the corresponding quarter last year.
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