The Zomato board will meet on June 17 to sign off the acquisition of quick commerce company Blinkit, according to two sources close to the developments.
Although the deal discussions earlier valued Blinkit at $700 million, the value of the final deal is expected to come down as it involves a stock swap of a definite number of shares in the ratio of 1:10 where Zomato would get 10 shares of Blinkit for every one of its shares.
“The interest rate for the loan will be 12 percent per annum or higher with a tenor of not more than one year. This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent to invest $400 million cash in quick commerce in India over the next two years,” the listed foodtech company had said at the time in a filing with the exchanges.
In August last year, GIPL raised $100 million from Zomato in a round which gave the company a unicorn status. That deal had gone through the process of getting approval from the CCI.
One of the sources also said that Zomato will acquire an Indian subsidiary of parent company Grofers International Pte Ltd, which is domiciled in Singapore. The company had shifted its headquarters in 2015 to the South East Asian country which boasted of lighter taxation regulations.