India’s online food delivery platform Zomato Ltd. is nearing an all-stock deal to acquire instant grocery delivery service Blinkit.
According to the people who asked not to be identified because the information is private, the companies are at an advanced stage of discussing the deal structure. One of the people added that they will seek approval from the country’s antitrust regulator in the coming weeks.
The talks could still be postponed or terminated, according to the sources. Blinkit and Zomato representatives did not immediately respond to requests for comment. The merger talks were first reported by the Economic Times on Tuesday.
The proposed acquisition would come shortly after Zomato invested another $100 million in Blinkit, formerly known as Grofers. After its $1.3 billion IPO in July, Zomato was among the first generation of internet unicorns to tap India’s capital market. On Tuesday, the stock closed at 76.55 rupees per share, just a tad higher than its IPO price of 76 rupees, after reaching an all-time high of 160.3 rupees in November.
The transaction heralds the start of a consolidation in India’s quick commerce space.
The publicly traded food-tech firm will seek approval from India’s Competition Commission soon.
Following the stock swap, Softbank, Blinkit’s lead investor, will own approximately 4% of Zomato. It should be noted that Softbank is already a shareholder in Swiggy’s rival.
