Zomato and Blinkit parent Eternal has approved a deal to exchange its entire shareholding in digital advertising platform AdOnMo for shares in community management platform Mygate, as part of a proposed merger between the two startups.
Eternal, in an exchange filing, said it would eventually own around 4.4% of the merged Mygate entity on a fully diluted basis. The stake is currently valued at ₹156 Cr.
Eternal had invested ₹112 Cr in AdOnMo in January 2022. The current valuation of the proposed Mygate holding represents a 39.3% increase over that investment, although the transaction involves an exchange of shares rather than a cash payout.
Under the deal, Eternal will transfer 11,214 Series B CCPS and 10 equity shares in AdOnMo to Mygate’s parent Vivish Technologies Pvt Ltd.
In return, Eternal will acquire 1,84,091 Series C1 CCPS and 164 equity shares in Mygate.
Eternal said the share exchange is a step towards the proposed merger of AdOnMo and Mygate. Following its completion, all other AdOnMo shareholders will also become shareholders in the merged Mygate entity, while AdOnMo will cease to exist as a separate entity.
AdOnMo operates a cloud-connected network of digital advertising screens across residential communities. Mygate offers visitor management, security, accounting, and community engagement services for gated residential communities.
(The story will be updated soon)
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