In March, we reported that Zomato had been in talks to acquire Blinkit, formerly Grofers, as it sought to gain a foothold in India’s buzzing fast-trading segment. The food delivery company, which already owns around 10% of Blinkit, is now close to signing the acquisition at a meeting on June 17, sources tell us.

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Also in this letter:

■ Myntra bets big on live trading for end of summer sales
■ Mumbai is India’s most forgotten city, according to Uber report
■ VCs continue to bet on Indian and South Asian startups


Zomato set to sign deal with Blinkit on June 17

Zomato

Zomato is likely to call an extraordinary general meeting on June 17 to authorize the acquisition of fast-trading startup Blinkit, two sources with knowledge of the talks tell us.

Long Courtship: The news comes nearly two years after the two entities first discussed a possible acquisition.

Zomato has already invested in Blinkit and provided a loan of up to $150 million to the fast trading entity earlier this year.

Offer details: According to sources, the deal is tied to a number of Zomato shares that Blinkit investors will receive.

  • Blinkit investors should also get a six-month lock-up period, one of the sources said.

  • After the deal, Blinkit shareholders are expected to get just under 10% of Zomato’s capital.

  • Blinkit’s biggest investor, SoftBank Vision Fund, will get a nearly 4% stake in Zomato, one of the sources said.

We reported on March 15, citing sources, that the deal was expected to value Blinkit at around $700-800 million based on Zomato’s market capitalization at the time. That was lower than Blinkit’s previous valuation of just over $1 billion. Additionally, Zomato shareholders should get 10 Blinkit shares for each one held in their company, we reported earlier.

Cost-conscious: Zomato has attempted to enter the fast-commerce space after twice abandoning plans to deliver groceries online since the pandemic began in 2020. But during its call to investors in May, the first since its IPO last year, CEO Deepinder Goyal said the company was “very aware” of not overpaying for Blinkit.


Myntra bets big on live trading for the end of summer sales

Myntra.

Online fashion retailer Myntra will be banking on live trading at its end-of-summer event, called End of Reason Sale, from June 11-16.

“Over 1,000 live sessions hosted by over 2,500 influencers, including 750 brand-led, will be on M-Live… [it] going to be a big part of EORS,” Myntra CEO Nandita Sinha told ET.

Great Expectations: Sinha said the company expects to see five million customers transact during the six-day sale, more than a million of which are expected to be new customers. About 40% of customers will come from Tier 2 and Tier 3 cities, she said.

Myntra expects a 26% increase in sales traffic this year compared to last year, and a significant increase in its beauty and personal care business.

“This year’s EORS comes at an opportune time when clients are stepping down after almost two years. It gave a big boost to fashion as a whole and we hope to see that momentum,” Sinha said.

Areas of intervention : In his first interview after taking over as CEO, Sinha told us on Feb. 24 that personalization, influencer-led live commerce, beauty and personal care would be the main focus areas of the team. direction of Myntra.

Competition: Myntra has seen increased competition in India’s online fashion space, which it has long dominated.

  • Reliance’s Ajio has made significant inroads since the start of the pandemic and has become a second major player in the market.

  • Beauty retailer Nykaa has also announced plans to sell fashion brands.

Mumbai is India’s most forgotten city, according to Uber’s lost and found report

Uber

Uber has released an interesting overview of the items its customers most often forget in taxis. The Uber Lost of Found Index India 2022 also lists the most forgetful “cities” in India, as well as the times of day, days of the week, and times of year when Uber riders tend to be the most forgetful.

Mumbai topped the list of India’s “most forgetful” cities for the second time in a row, according to the report. It was followed by Delhi and Lucknow. He said the most “forgetting” time of day for Indians was 1-3 p.m.

Forgotten items in Uber

Over the past year, the top five most often forgotten items were phones/cameras, laptops, backpacks, wallets, and speakers, according to the report.

Apart from the usual, Indians also left unique and unusual items in Uber taxis. These included ghewar (an Indian sweet dish), flutes, Aadhaar cards, dumbbells, bicycle handle, cricket bats, spike guards, and college certificates, to name a few- one.

The report also contained information on the most forgotten items on certain days. For example, people are more likely to forget their clothes on Saturdays, laptops on Wednesdays, and headphones/speakers on Mondays and Fridays.


VCs continue to bet on Indian and South Asian startups

Funds

Despite poor performance by growth-stage startups, Indian and Southeast Asian venture capital funds have raised $3.1 billion so far this year, according to the based investment data firm. in London Preqin. By comparison, Chinese VCs raised $2.1 billion, up from $27.2 billion last year.

What fuels interest? Nikkei Asia reported last week that venture capital firms backing startups in India and Southeast Asia are raising record sums for new funds as investors pull out of China.

Many investors view startups from these regions as safer bets than their Chinese counterparts, especially since China’s crackdown on its tech sector last year.

These companies see India and Southeast Asia as attractive investment options thanks to their growing middle class, young population and increased digital adoption.

Yes, but: Well-known venture capital firm Sequoia Capital recently postponed the closing of its $2.8 billion fund for India and Southeast Asia after allegations of financial irregularities and corporate governance issues. business in some of its portfolio companies.

Tweet of the day


China set to conclude Didi probe, lift ban on new users

Have I got

Chinese regulators are concluding their investigation into ride-hailing giant Didi Global and are set to allow its apps to return to domestic app stores after more than a year, the Wall Street Journal reports.

Angry Regulators: Didi, which listed in the United States last year, ran into trouble after Chinese regulators alleged the company illegally collected users’ personal data. An investigation has been launched against the company and Chinese app store operators have been urged to remove its apps.

Authorities also told the company to stop registering new users, citing national security and public interest.

The company had to end its Hong Kong listing plans earlier this year after failing to appease regulators.

Big penalty ahead: As the investigation draws to a close, Didi is set to receive a hefty fine from regulators. Last year, Alibaba was fined a record $2.8 billion at the height of China’s crackdown on its tech giants.

Today’s ETtech Top 5 newsletter was curated by Zaheer Merchant in Mumbai and Ruchir Vyas in New Delhi. Graphics and illustrations by Rahul Awasthi.