Zomato, the largest meal delivery company in India, announced plans to buy Blinkit for $570 million in shares. Depending on shareholder and stock market clearances, the deal is anticipated to complete in early August of this year.
In addition, Zomato will pay Blinkit’s storage company $8 million in cash.
The purchase price is significantly less than Blinkit’s recent investment round valuation of over US $1 billion. After receiving $100 million from Zomato last year, it joined the unicorn club.
Zomato’s CEO, Deepinder Goyal, highlighted in a statement that rapid commerce is a logical progression from the company’s meal delivery service because both are hyperlocal companies. “Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers,” he added.
Goyal also revealed that Zomato’s food delivery GOV has been surpassed by just a fifth by Blinkit’s gross order value (GOV). In certain cities, the percentage even exceeded 63% of Zomato’s.
Blinkit, formerly known as Grofers, was established in 2013 and offers 15-minute groceries and essential delivery to clients. It provides a network of independent shops in addition to over 4,000 company-owned stock-keeping facilities.