InvestorQ : What is the significance of the deal between Zomato and Blinkit?
rhea Babu made post

What is the significance of the deal between Zomato and Blinkit?

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Riya Dwivedi answered.
2 months ago
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The deal is significant because it marks the first major association between an existing giant in the food delivery business, Zomato, and a leading name in quick commerce (Q-commerce), Blinkit. You must aware that Blinkit was formerly called Grofers and the stock had been under a lot of financial strain in the last few quarters as the Q-Commerce is a cash guzzling business and the company had to even shut a lot of its dark stores.

The deal between Zomato and Blinkit will be an all-stock deal. It would be recollected that Grofers rebranded itself as Blinkit after it had raised $100 million from Zomato. Post the deal, Softbank, which is an investor in Blinkit, will end up owning 4% in Zomato by virtue of the stock swap. Interestingly, Softbank is already an early investor in Zomato’s biggest competitor, Swiggy. Blinkit recently laid off staff, shut dark stores and delayed vendor payments.

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