Eternal, the parent company of Blinkit and Zomato, plans to acquire a 4.4% stake in Mygate through a share exchange agreement while simultaneously selling its stake in the digital out-of-home advertising business AdOnMo.
In a filing with stock exchanges, Eternal announced that it will transfer 11,214 Series B preferred convertible shares and 10 ordinary shares of AdOnMo Private Limited to Mygate. In return, Eternal will receive 184,091 Series C1 preferred convertible shares and 164 ordinary shares of Mygate.
AdOnMo, founded in 2016, manages a cloud-connected network of digital screens located in residential complexes, commercial buildings, tech parks, and public areas, including supermarkets, shopping malls, and metro stations. In January 2022, Eternal invested ₹112 crore in AdOnMo. AdOnMo operates in 27 cities, having a presence in over 7,000 gated communities and covering more than 200 million square feet of office space.
According to information from Mygate, this deal will allow the company to expand its offerings as a community management platform. Mygate is already present in 30,000 residential communities, and AdOnMo will bring a network of 55,000 connected digital screens.
Sandeep Bommireddi and Sravanth Gajula, founders of AdOnMo, will join the Mygate board of directors as co-founders. Abhishek Kumar, Co-founder and CEO of Mygate, stated: 'Communities will receive integrated digital screen infrastructure for seamless delivery of critical updates and information to residents—while we continue to uphold the trust and privacy that residents expect from us.'
Sandeep Bommireddi and Sravanth Gajula, co-founders of AdOnMo, added: 'AdOnMo was founded with the vision that ambient advertising could be as intelligent, measurable, and technologically advanced as digital advertising at scale. The collaboration with Mygate will allow us to accelerate this vision and create greater value for residential complex management boards, residents, developers, and brands.'