Zomato
Zomato is going to infuse $150 million in debt to rescue quick commerce startup Blinkit, the company said in a stock filing on March 15.
The company would disburse the loan at 12 percent in "one or more tranches" with a tenure of more than one year, a Moneycontrol report said.
"This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next two years," said Zomato.
Blinkit last raised $100 million from Zomato in a round that gave the company a unicorn status, the report said.
The move comes at a time as Blinkit faces fierce competition, has laid-off workers, shuttered dark stores, and delayed vendor payments.
Blinkit has laid off store managers, riders, pickers in Hyderabad, Kolkata, and Mumbai, which have impacted at least 5 percent of its staff.
Meanwhile, Zomato and Blinkit have signed up for a merger in an all-stock agreement which is likely to be at a down round for a valuation of $ 700 million, media reports said.
The public-listed food-tech firm will be seeking the Competition Commission of India for approval soon.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
