Eternal, the parent company of Blinkit and Zomato, will acquire a 4.4% stake in Mygate through a share-swap agreement as it divests its stake in outdoor digital advertising business AdOnMo.
In a disclosure to the stock exchanges, Eternal said it will transfer 11,214 Series B compulsorily convertible preference shares and 10 equity shares in AdOnMo Private Limited to Mygate. In exchange, Eternal will acquire 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares in Mygate.
Founded in 2016, AdOnMo operates a cloud-connected network of digital screens across residential communities, commercial buildings, tech parks and public spaces, including supermarkets, malls and metro stations. Eternal invested Rs 112 crore in the company in January 2022. AdOnMo operates across 27 cities, with a presence in more than 7,000 gated communities and over 200 million sq. ft. of office space.
According to Mygate, the transaction will expand its offerings as a community management platform. Mygate has a presence in 30,000 residential communities, while AdOnMo brings a network of 55,000 connected digital screens.
Sandeep Bommireddi and Sravanth Gajula, Founders of AdOnMo, will be joining Mygate’s board as co-founders.
“Communities gain an integrated digital screen infrastructure to communicate critical updates and information effortlessly with residents—all while we continue to uphold the trust and privacy our community residents expect from us," said Mygate co-founder & CEO Abhishek Kumar.
"AdOnMo was founded with a vision that ambient advertising could become as intelligent, measurable and technology driven as digital advertising at scale," said Sandeep Bommireddi and Sravanth Gajula, Co-founders, AdOnMo. "Joining hands with Mygate allows us to accelerate this vision and create greater value for RWAs, residents, developers and brands alike."