According to a report by ET, Zomato Ltd, India’s online food delivery platform, is close to completing an all-stock transaction to acquire quick grocery delivery provider Blinkit.
The firms are at an advanced stage of considering the contract structure, according to the sources, who requested not to be identified because the information is confidential. According to one of the sources, they would seek approval from the country’s antitrust authority in the coming weeks. The talks might yet be postponed or dissolved, according to the sources.
Blinkit and Zomato representatives did not immediately reply to calls for comment. The merger discussions were first revealed by the Economic Times on Tuesday.
The planned acquisition would come only a few months after Zomato invested an extra $100 million in Blinkit, formerly known as Grofers. After its $1.3 billion initial public offering in July, Zomato became one of the first groups of online unicorns to touch India’s capital market. After reaching an all-time high of 160.3 rupees in November, the stock ended at 76.55 rupees a share on Tuesday, only a smidgeon over its IPO price of 76 rupees.
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