Technology

Zomato Blinkit said it had reached a Merger Agreement in a share agreement


Zomato Ltd, an Indian food distribution company, has partnered with Blinkit, with an immediate delivery service valued at between $ 700 million ($ 5.35 billion) and $ 750 million ($ 5.732 billion).

TechCrunch reported the development on Tuesday, citing a source familiar with the matter.

Zomato and Blinkit did not immediately respond to Reuters’ requests for comment.

The food distribution company acquired a more than 9 percent stake in Blinkit, which is backed by SoftBank, in August for $ 518 million.

Formerly known as Grofers, Blinkit changed its mind at the end of last year as its CEO promised to speed up shipments from food to electronics in a growing market dominated by Walmart’s Flipkart and Amazon’s local units.

A startup operating in more than 20 locations across India offers the convenience of delivery in 10 minutes, much less than the hours or days that most competitors take.

Zomato said in a Bombay Stock Exchange (BSE) filing that Grofers (Blinkit) had been granted a $ 150 million (1,145 million) loan in part or more. The file states that the interest rate on the loan will be 12 percent or more per year for a term of more than one year.

“This May will be in line with GIPL’s short-term capital requirements and is in line with its stated intention to invest $ 400 million ($ 3.057 billion) in India’s fast-paced trade over the next two years,” Zomato said. .

We have contacted Zomato to understand the details of his agreement with Blinkit and this article will be updated as soon as we receive a response.




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