Zomato shares up 4% after grocery delivery startup Blinkit for Rs 4,447 crore

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Zomato shares up 4% after grocery delivery startup Blinkit for Rs 4,447 crore

Shares of Zomato went up nearly 4 per cent in early trade after the food delivery company said it would buy local grocery-delivery startup Blinkit for Rs 4,447 crore $568.16 million in an all-stock deal.

The food-delivery firm is planning to take advantage of the booming quick delivery market with this move.

The stock of Zomato increased by 3.7 per cent at Rs 73 against the previous close of 70.35 on the BSE. At 12: 00 pm, the stock was trading 6.54 per cent lower at Rs 65.75.

The large-cap stock has gone up 8.22 per cent for the last five sessions. The stock fell 49 per cent in 2022 and gained 12.81 per cent in a month.

On November 16, 2021, the stock hit a 52 week high of Rs 169.10 and a 52 week low of Rs 50.35 on May 11, 2022.

Total 9.26 lakh shares of the firm changed hands on the BSE, resulting in a turnover of 6.54 crore. The firm's market cap was at Rs 54,643 crore on the BSE.

Zomato, backed by China's Ant Group, did not reveal the size of the latest stake. In August, Zomato acquired a 9% stake in Blinkit for nearly Rs 518 crore $66.16 million.Zomato said that it would invest as much as $400 million in the Indian quick commerce market over the next two years.

SoftBank Group backed Blinkit was formerly known as Grofers. It rebranded itself late last year as its chief promised to speed up delivery of everything from groceries to electronics in a burgeoning market dominated by Walmart's Flipkart and Amazon's local unit.

Blinkit operates in over 20 Indian cities, delivering products ranging from milk, eggs, fruits, and vegetables to electronics. According to Zomato, the startup had an annual gross merchandise value of $450 million as of January.

Zomato reported a loss of 360 crore in the fourth quarter of March 31, 2022 against a loss of 134 crore in the year-ago period. Revenue from operations increased by 75 per cent to Rs 1,212 crore in the same quarter last fiscal year, compared to Rs 692 crore in the same quarter last fiscal.