Zomato, an online food delivery company, has struck a major merger deal with Blinkit, formerly known as Grofers. However, the agreement is likely to be completed within 60 days. 

Blinkit, formerly known as Grofers and sponsored by Softbank, has agreed to merge with meal delivery unicorn Zomato. That means Blinkit, which is in financial trouble, is merging with zomato, an online meal delivery service. The agreement between the two companies is fully based on shares. According to reports, the sale will be worth between 700 and 800 million dollars.

Blinkit investors will acquire shares in zomato under the All-Stock Deal, which completes the deal within 60 days. According to reports, the deal is expected to be completed in 60 days. 

The merger comes at a time when Blinkit is laying off employees and closing stores amid growing competition in the market. In addition, the company also delayed payments to some vendors. In July last year, Blinkit raised $ 100 million from zomato by selling a 10 percent stake.

It is worth noting that the deal was previously worth less than $ 1 billion. Blinkkit also raised $ 100 million from zomato based on the same valuation. The company later acquired unicorn status. zomato will soon approach the Competition Commission of india for approval of the merger agreement.

Zomato and Quick Commerce player Blinkit signed the merger term sheet two three weeks ago. In august 2021, CCI approved a $ 100 million investment in zomato Blinkit for a 9.3 percent stake. One week ago, zomato agreed to finance this amount to Blinkit through debt instruments, which could then convert it into equity.

Shares of zomato rose more than 2 percent on wednesday following the deal. The deal had a positive impact on investor sentiment as well as stock wings from the price point. 

Brokerage firms' opinion on the deal between

Zomato Blinkit The merger of Blinkit with zomato will give food delivery aggregator customers access to online grocery and zomato online grocery, according to brokerage firm HSBC Securities India. 

On the other hand, brokerage firm Bofa Securities said the deal could turn negative for zomato shortly.