According to reports, Online food delivery company Zomato and on-line grocer Blinkit, previously grofers has signed up for a merger in an all inventory deal that’s possibly to be at a down spherical for a valuation of $seven hundred million, as according to record.

Blinkit last raised $100 million from Zomato in a round which gave the company a unicorn popularity.

The deal alerts closer to the start of a consolidation in the brief commerce space in India.

The public indexed meals-tech firm will be drawing close the Competition Commission of India for an approval soon.

Zomato is expected to record for approval to the Competition Commission of India (CCI) shorty. The file introduced that underneath the time period sheet, Blinkit’s lead investor SoftBank is anticipated to get a 4% stake in Zomato through the merger.

Zomato stated it’d grant a mortgage of as much as $a hundred and fifty million to Grofers India Pvt Ltd, Blinkit’s Indian entity. Interest can be charged at 12% yearly, with a tenure of no longer extra than a yr.

The proposed share-swap deal might bring about Blinkit’s largest investor, SoftBank Vision Fund, getting a stake in the food shipping company. Tiger Global, that is an present investor in Zomato, might boom its stake, as according to report.