Zomato Hyperpure Private Limited, the business-to-business (B2B) restaurant supply business of the food delivery company, has successfully acquired Blinkit’s warehousing and ancillary services business Hands On Trades Private Limited (HOTPL).
Zomato has acquired Blinkits’s ancillary service for about $8 million in cash, leaving out the B2B trading business under HOTPL as it no longer fits strategically with its plans, the company said in a letter to shareholders on June 24. “Our existing Rs 222.8 crore investment in HOTPL is protected through our liquidation preference right,” it said.
The food delivery company in a disclosure to BSE on Thursday notified that the acquisition of the ancillary business, as well as Blinkit (formerly Grofers), was complete. With over 97% of shareholders voting in favor of Blinkit’s acquisition by Zomato, the acquiring process was closed in an all-stock deal for Rs 4,447 crore.
“Further, the company has completed the acquisition of 100% shareholding of BCPL from its shareholders. Accordingly, BCPL became a wholly owned subsidiary of the company with immediate effect i.e. from August 10, 2022. This is to further inform the exchange that Zomato Hyperpure Private Limited, a material subsidiary of the company, has acquired the warehousing and ancillary services business of Hands On Trades Private Limited,” Zomato wrote in its filing on Thursday.
Zomato, after the acquisition, has plans to commence the integration of Blinkit on multiple fronts, starting with customers and delivery fleets. It may also consider moving Blinkit to the Zomato app.
As per reports, Blinkit is likely to shut most of its backend fulfillment warehouses and merge them with Hyperpure.