Food delivery firm Zomato and instant delivery service Blinkit have reached an agreement for a merger, a source familiar with the matter told TechCrunch. The all-stock deal values Blinkit between $700 million and $750 million, the source said, requesting anonymity as the matter is private.
The merger comes at a time when Blinkit has been struggling to raise funds from external investors for several quarters. The SoftBank-backed startup, which was formerly called Grofers, pivoted to instant grocery delivery last year. The startup, which had raised about $700 million and was last valued at over $1 billion, was struggling to compete with younger and heavily-backed startups Swiggy, which also counts SoftBank among its investors, and YC Continuity-backed Zepto.
Zomato, which is already an investor in Blinkit, had conversations with the younger startup for a full acquisition last year, TechCrunch reported earlier.
The two firms will need to get the approval from the Indian antitrust watchdog Competition Commission of India for the deal.
This is a developing story. More to follow…