Zomato Completes Acquisition Of Blinkit

After the acquisition, Zomato plans to start integrating Blinkit on multiple fronts, to begin with customers and delivery fleets and has also plans to move Blinkit to the Zomato app

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Zomato Hyperpure Private Limited, a B2B restaurant supply business of the food delivery company, has announced that it has completed the acquisition of Blinkit's warehousing and ancillary services business, Hands on Trades private limited (HOTPL).

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According to Zomato in an exchange filing, the stakeholders relationship committee of its board in a meeting approved the allotment of 62.85 crore fully paid-up equity shares of the company to acquire 33,018 equity shares of Blink Commerce India private limited (BCPL). Further, the company has completed acquisition of 100 per cent shareholding of BCPL from its shareholders. Accordingly, BCPL became a wholly owned subsidiary of the company with immediate effect, from 10 August 2022.

"Zomato acquired the ancillary service for about $8 million in cash. It has not acquired the B2B trading business under HOTPL as it no longer fits strategically with its plans. Our existing INR 222.8 crore investment in HOTPL is protected through our liquidation preference right," said the company in a letter to the shareholders on June 24.

Zomato had announced its Blinkit acquisition plans on 24th June 2022, through a blogpost, which reads, "This foray into the next big category is timely as our existing food business is steadily growing towards profitability. Zomato has grown at a CAGR of 86 per cent in the last 4 years to an adjusted revenue of INR 55.4 billion while the adjusted EBITDA margin has improved from 153 per cent in FY19 to 18 per cent in FY22."

As per reports, it is said that after the acquisition, Zomato plans to start integrating Blinkit on multiple fronts, to begin with customers and delivery fleets and has also plans to move Blinkit to the Zomato app.