Zomato
Zomato to lend $150 million loan to cash-strapped Blinkit
Zomato is going to infuse $150 million in debt to rescue quick commerce startup Blinkit, the company said in a stock filing on March 15.
The company would disburse the loan at 12 percent in "one or more tranches" with a tenure of more than one year, a Moneycontrol report said.
"This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent of investing up to $400 million cash in quick commerce in India over the next two years," said Zomato.
Blinkit last raised $100 million from Zomato in a round that gave the company a unicorn status, the report said.
The move comes at a time as Blinkit faces fierce competition, has laid-off workers, shuttered dark stores, and delayed vendor payments.
Blinkit has laid off store managers, riders, pickers in Hyderabad, Kolkata, and Mumbai, which have impacted at least 5 percent of its staff.
Meanwhile, Zomato and Blinkit have signed up for a merger in an all-stock agreement which is likely to be at a down round for a valuation of $ 700 million, media reports said.
The public-listed food-tech firm will be seeking the Competition Commission of India for approval soon.
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