On June 24, Zomato approved the acquisition of fast commerce firm Blinkit on the food delivery company’s board in an all-stock deal of Rs 4,447 crore.

In addition, Zomato’s restaurant supply subsidiary Hyperpure will acquire the warehousing and ancillary services business of Hands on Trade Private Limited for Rs 60.7 crore.

While the Blinkit deal was estimated to be worth more than $700 million, the drop in Zomato’s share price brought it down to $568 million at current exchange rates.

The filing also disclosed Blinkit’s annual turnover for the past three financial years: Rs 263 crore in FY22, Rs 200 crore in FY21 and Rs 165 crore in FY20. Under the terms of the deal, Blinkit’s largest shareholder SoftBank will receive 28.71 crore shares in Zomato, 12.34 crore in Tiger Global, 1.5 crores in BCCL and 3.66 crores in South Korean investors DAOL.

Sequoia’s stake in Zomato will rise from 1.33 crore to 5.84 crores as it will receive 4.51 crore new shares in the company. Last August, Blinkit (then Grofers) raised $100 million from Zomato in a funding round that gave the company unicorn status.

Zomato then also gave cash-strapped Blinkit a lifeline by providing a $150 million loan to parent company Grofers India Private Limited (GIPL). The food delivery company recently said on an earnings call that the full payment had not been made, and the rest will be released based on whether the company needs to.

“The interest rate on loan is 12% per year or higher, and the term does not exceed one year. This loan will support GIPL’s capital needs in the short term and is in line with our stated intention to invest $400 million in cash in India Rapid Business over the next two years,” the publicly traded food tech company said in a filing with the exchange at the time.

For Zomato, Blinkit is a last-ditch effort to enter the grocery space after exiting the space twice in 2020 and 2021. Last year, the company had said that future bets on the grocery space would flash through its investments.

Grofers and Zomato co-founders Albinder Dhindsa and Deepinder Goyal also go a long way. Both of them studied at the IIT Delhi from 2000 to 2005. Before founding Grofers, Dhindsa also led Zomato’s international business for two years. Albinder’s wife, Aakriti Chopra, was one of Zomato’s early employees. She currently serves as Chief People Officer and was recently promoted to co-founder in recognition of her contributions to the company.