Zomato board to officiate Blinkit acquisition; no CCI approval needed

Date: 2022-06-07   Author: Saipriya Iyer  Category: #news

Zomato board to officiate Blinkit acquisition; no CCI approval needed

Board members of the food delivery major Zomato are reportedly planning to sign off the acquisition of instant delivery service provider Blinkit on June 17th.

The primary caveat of the deal is the stock swapping in the ratio of 1:10 where Zomato would receive 10 shares for every one of Blinkit’s shares.

This share swap deal does not require approval from the CCI (Competition Commission of India) as Zomato intends to invoke the 'de minimis' exemption, which applies to transactions below a certain threshold.

For those unversed, ‘de minimis' is a Latin phrase that describes something insignificant.

In March 2022, Zomato loaned USD 150 million to GIPL (Grofers India Private Limited) as a lifeline for the cash-strapped Blinkit.

The food-tech firm mentioned in its recent earnings call that the loan has not been disbursed in its entirety and mentioned that the remaining amount would be offered depending on the company’s needs.

During an exchange filing, Zomato pointed out that the loan will be charged with an interest rate of 12 percent per annum or higher for not more than a year.

This loan will support GIPL’s near-term capital requirements and aligns with Zomato’s aim to invest USD 400 million in the Indian quick commerce industry over the next two years.

In August 2021, GIPL secured a funding round of USD 100 million from Zomato which brought the company into the unicorn category, a transaction that required approval from the CCI.

Credible sources have stated that Zomato will take over an Indian subsidiary of Singapore-based Grofers International Pte Ltd. The company moved its headquarters to the sovereign island country in 2015 due to its lenient taxation regulations.

This would not be the first time that the food delivery major is leveraging the de-minimis exemption for a takeover. Zomato’s acquisition of Uber’s food delivery arm UberEats India had invoked this exemption as well.

Source Credit:


About Author

Saipriya Iyer linkdin-boxtwitter

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

Post Recommendents

Antenatal Screening Market Share, By Product Analysis, Application, End-Use, Regional Outlook, Competitive Strategies & Forecast up to 2028

Author: Ashwin Naphade

Global Antenatal Screening Market, 2022-2028 Research Report provides crucial statistics on the market status of the Global Antenatal Screening manufacturers and is a respected source of guidance and direction for companies and individuals interes...

Pediatric Vitrectomy Market Size | Global Industry Analysis, Segments, Top Key Players, Drivers and Trends to 2028

Author: Ashwin Naphade

Global Pediatric Vitrectomy market report provides major statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.

The Pediatric Vitrectomy market repor...

Legionnaire Disease Testing Market Comprehensive Analysis, Share, Growth Forecast from 2022 to 2028c

Author: Ashwin Naphade

This report studies the Global Legionnaire Disease Testing market status and outlook of global and major regions, from angles of players, regions, product types and end industries; this report analyzes the top players in global and major regions, ...