Amalgamation of

Zomato and
Blinkit
Zomato, India's leading food delivery platform, recently
announced its acquisition of Blinkit, a quick commerce startup.
This strategic merger aims to create a comprehensive ecosystem
that caters to the evolving needs of modern consumers.

by Astuti Paswan
Overview of Zomato and
Blinkit
Zomato
Zomato is a leading food delivery and
restaurant discovery platform in India,
known for its extensive restaurant
listings, user reviews, and seamless food
ordering experience.
Blinkit
Blinkit, formerly known as Grofers, is a
quick commerce startup that promises
lightning- fast delivery of everyday
essentials and groceries, typically within
10-15 minutes.
Situation at the Time of
Merger
1 Intense Competition
The food delivery and quick
commerce markets in India
were highly competitive, with
players like Swiggy, Amazon,
and Dunzo vying for market
share.
2 Changing
Consumer
Preferences
Consumers were increasingly
demanding faster delivery
times and a wider range of
products, beyond just food.

3 Financial Challenges
Both Zomato and Blinkit were facing financial pressures, with Blinkit
in particular struggling to achieve profitability.
Advantages of the
Merger
Expanded Offerings
The merger allows Zomato to offer a
wider range of products and services,
including quick delivery of groceries
and everyday essentials.
Enhanced Customer
Experience
Customers can now access a one-stop-
shop for their food and daily needs,
with the convenience of fast delivery.
Operational Synergies
The companies can leverage each
other's infrastructure, logistics, and
customer base to achieve economies of
scale and improved efficiency.
Improved Financial Stability
The combined resources and scale of
the merged entity can help improve the
financial position and profitability of
the group.
Disadvantages of the
Merger
1 Integration Challenges
Combining the operations,
systems, and cultures of two
different companies can be
a complex and time-
consuming process.
2 Increased Competition
The merger may attract more
competition as other players try
to replicate the combined
offerings of Zomato and Blinkit.

3 Regulatory Hurdles
The merger may face scrutiny from regulatory authorities, which could
delay the integration process and increase compliance costs.
Current
Scenario
1 Acquisition Announcement
In June 2022, Zomato announced its plans to acquire Blinkit for
$568 million, marking a significant step in the company's
expansion into the quick commerce space.

2 Regulatory Approval
The merger is currently awaiting approval from the Competition
Commission of India (CCI), which is reviewing the deal to ensure
it does not harm competition in the market.

3 Integration Progress
Zomato and Blinkit have already started integrating their
operations, with Blinkit's deliveries being offered through the
Zomato app in select cities.
Evaluation of Merger
Success
1 2 3

Synergy Realization Regulatory Approval Financial

The success of the merger Obtaining the necessary Performance The
will depend on Zomato's regulatory approvals will combined entity's ability
ability to effectively be a critical milestone in to improve its financial
integrate Blinkit's the merger process, as position, achieve
operations and achieve any delays or roadblocks profitability, and create
the expected synergies. could hinder the value for shareholders will
integration. be a key measure of the
merger's success.
Conclusion and
Recommendations
Growth Potential
The merger presents a
significant opportunity for
Zomato to expand its reach
and capture a larger share of
the growing quick
commerce market in India.
Successful Integration
Effective integration of the
two companies' operations,
systems, and cultures will
be crucial to realizing the
full benefits of the merger.
Innovative Offerings
The combined entity should
focus on developing
innovative product and
service offerings to stay
ahead of the competition
and meet evolving customer
needs.