The food-tech firm Zomato has entered into an all-stock merger deal with Blinkit, and is planning to approach the Competition Commission of India (CCI) soon, Moneycontrol reported citing sources.
Blinkit, which was earlier known as Grofers is currently undergoing a severe cash crunch and has shut down approximately 40 dark stores, and laid off its employees across riders, pickers, and store managers in Mumbai, Hyderabad, and Kolkata.
Earlier, Zomato had planned to rescue Blinkit by investing $75 to $100 million as loans to the company. The food-tech firm had also invested $100 million in Blinkit for a 10 per cent equity in July last year, according to the report.
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Notably, in order to remain afloat, Blinkit had also raised $10 million as debt from Innoven Capital. Blinkit will receive the amount in three tranches. It received Rs 25 crore last month as the first tranch.
Between November last year and February this year, the Quick commerce delivery company had invested Rs 600 crore to expand its business in a highly competitive grocery delivery market. The company currently has 46 dark stores across the country.
According to a report by Indian Express, Blinkit has also delayed payment to its vendors in the last two months.
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