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As Zomato tanks, here's a brief flashback to the food delivery firm's Blinkit deal and more

In June 2022, Zomato bought Blinkit in an all-stock deal valued at around $570 million.

July 25, 2022 / 12:32 PM IST

As Zomato tanks 13 per cent to record lows, here's looking back on all the headlines the food delivery firm made in recent times.

In March this year, Moneycontrol was the first to report that Blinkit – the new avatar of Grofers after 10 minute delivery pivot – was laying off and shutting dark stores in order to control cash burn.

Then, in June, Zomato bought Blinkit in an all-stock deal valued at around $570 million. “Quick commerce has been our stated strategic priority for the last one year. We have seen this industry grow rapidly both in India and globally, as customers have found great value in quick delivery of groceries and other essentials,” Zomato CEO Deepinder Goyal had said then.

Also Read | Understanding Zomato's $570 million acquisition of Blinkit: poison pill or panacea?

In the next month, Zomato finance chief Akshant Goyal had told CNBC TV18 that international business does not fit into Zomato's roadmap anymore.

Goyal, during the exclusive conversation with CNBC TV18, also noted that he is "very bullish" about the food delivery business over the long term. "We will be able to add 7 million transacting users year over the next 10 years," he said.

More recently, last week, Zomato announced that it will try to make its loyalty programme more dine-in focused. 

Talking about the loyalty programme, Goyal said, “Resurgence of Covid right at the beginning of the quarter and resultant lockdowns again set the restaurant industry back from the progress they had made in the previous quarter as customers avoided eating at restaurants.”

Also, last week, a key parliamentary panel met representatives of various technology platforms, e-commerce players and gaming entities, including Zomato and Flipkart, to discuss about their market behaviour amid rising anti-competition concerns.

Also Read | Zomato's shares sale likely in tranches as lock-in for pre-IPO investor ends: Sources

Right now Zomato, which was one of the first unicorns to list last year, sees selling pressure on the bourses as one year lock-in period for pre-IPO investors comes to an end. Sources tell Moneycontrol that shares worth Rs 1,000 crore are up for sale immediately and investment bankers have been building a book for block deals.

Sources shared with Moneycontrol that buyer interest is tepid and new investors may be ready to buy at a discount to current market price of Zomato shares.

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Moneycontrol News
first published: Jul 25, 2022 12:32 pm