According to sources, Blinkit, purchased by food delivery giant Zomato, promoted long-time CEO Rishi Arora to cofounder rank two months before the takeover. Sajal Gupta, a former Zomato executive, was also named the company’s CTO.
On June 10, the startup announced that it was halting operations owing to a “lack of technological infrastructure” at local stores employed for last-mile deliveries. The company stated that the app would be relaunched soon. The appointment of Arora as cofounder follows the departure of Blinkit co-founder Saurabh Kumar in June of last year. He went on to establish Warpli.
Zomato is now in the process of completing its $578 million acquisition of Blinkit. On July 4, a group of Mumbai-based high net worth investors protested to Sebi claiming Zomato had failed to make timely disclosures to stock exchanges about its acquisition of Blinkit.
According to the arrangement, Blinkit shareholders would get about 7% of Zomato at a rate of 70.76 per share. The transaction is anticipated to close in early August, according to the company’s disclosure to the stock exchange. Blinkit made ₹ 22.1 crores in sales in Jan, its first month as a fully-fledged rapid commerce business. As of May, this figure has risen to Rs 58 crore.