"We had to shut down some stores for a few days to ensure safety of our employees at stores and the delivery partners. Most of these stores have now resumed operations," Zomato said.
The deal comes after it bought a more than 9% stake in SoftBank Group 9984.T-backed Blinkit for nearly 5.18 billion rupees in August, with a promise to invest as much as $400 million in the Indian quick-commerce market over the next two years.
Shares of food aggregator Zomato tumbled sharply on Monday after the company's Board of Directors approved a proposal to acquire a cash-strapped quick commerce company Blinkit for Rs 4,447 crore.
Zomato’s founder and CEO Deepinder Goyal along with CFO Akshant Goyal explained in detail the drivers of the acquisition and the synergies that both companies would achieve.
India has seen a booming demand for delivery of food and groceries, especially during the Covid-19 pandemic. Zomato and Swiggy are eyeing the expanding quick commerce market in India.