Private Equity

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Zomato to acquire instant grocery player Blinkit for $578-M

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Publicly-listed food delivery company Zomato has acquired fellow Gurgaon-based instant grocery startup Blinkit, formerly known as Grofers, for about USD 578 million. Zomato will acquire 33,018 equity shares of Blink Commerce Pvt Ltd (BCPL) from its shareholders in an all-stock deal worth INR 4,447.48 crore (or USD 570 million via an issue of ~62.9 crore Zomato shares - resulting in a 6.88% equity dilution - at INR 70.76 per share). Zomato's B2B arm Hyperpure will also acquire BlinkIt's B2B business Hands on Trade Private Limited (HOTPL) warehousing and ancillary services business for INR 60.7 crore (USD 8 million) in cash. The target entities have a net debt of ~INR 673.1 crore. Of the total gross debt, INR 1,132.8 crore (including accrued interest) is payable to Zomato. The implied equity value of the proposed acquisition targets is INR 4,945.8 crore and the implied enterprise value is INR 5,619 crore.

From the Venture Intelligence PE-VC Deal Database: Between Oct-14 and Feb-22, Blinkit had raised almost USD 600 M from Zomato, Tiger Global, KTB Ventures, Tiger Global, Sequoia Capital India, SoftBank Corp, KTB Ventures, DST Global, Apoletto and others.