Zomato says to acquire Blinkit (earlier Grofers) by issuing shares worth Rs 4,447 crore or $570 million
Blinkit has raised a total of $670 million in equity till now
So, preliminary math says it is being acquired for less or just about the cash it has raised since 2015
Zomato already acquired about 10% stake last year for about $100 million
And earlier this year entered into a deal to give debt of $150 million
That is part of Zomato's plan to invest a total of $400 million in cash into quick commerce as it takes on Swiggy
Zomato building the case for Blinkit acquisition in its FAQs
Higher average order value (AOV) is one argument
Blinkit has AOV of Rs 509 vs Rs 398 for Zomato
So about 25% higher than Zomato
The argument is that it helps capture higher wallet share and its happening globally
@madhavchanchani
Sir, blinkit is a non profitable company burning cash more than they have in rev. I don’t know why tomato wants to burn their Money to acquire this company.