Top headlines: Zomato to acquire Blinkit, PPI ban to hit BNPL users & more

Food aggregator platform Zomato’s board approved the acquisition of quick-commerce company Blinkit for Rs 4,447 crore (around $567 million) in an all-stock deal. Zomato will be acquiring 33,018 equity shares of Blink Commerce Pvt Ltd (BCPL). The Reserve Bank of India’s (RBI’s) move to disallow loading prepaid payment instruments (PPIs) from credit lines may affect 8-10 million customers who are part of the “buy now pay later” (BNPL) universe, say players who are feeling the heat owing to the regulatory diktat.


Zomato board approves acquiring quick commerce firm Blinkit for Rs 4,447 cr

Food aggregator platform Zomato’s board approved the acquisition of quick-commerce company Blinkit for Rs 4,447 crore (around $567 million) in an all-stock deal. Zomato will be acquiring 33,018 equity shares of Blink Commerce Pvt Ltd (BCPL).  This transaction will be carried out through issuance and allotment of up to 628.5 million fully paid-up equity shares of Zomato, having face value of Rs 1 each at a price of Rs 70.76 per equity share. Read more 

PPI credit ban likely to hit 8-10 million BNPL users, says industry
 

The Reserve Bank of India’s (RBI’s) move to disallow loading prepaid payment instruments (PPIs) from credit lines may affect 8-10 million customers who are part of the “buy now pay later” (BNPL) universe, say players who are feeling the heat owing to the regulatory diktat. The move could also result in a systemic risk from a lending standpoint because if suddenly the products are stopped, it may not be possible for customers to repay their loans. Read more

RBI examining PPI credit, BNPL models; in talks with fintechs on concerns

The Reserve Bank of India (RBI) is examining the practices and models of prepaid payment instruments (PPI) and Buy Now Pay Later (BNPL) service providers days after the central bank reiterated its stance that regulated activities that require license cannot be practiced by fintech players, without authorisation, under the garb of innovation. Read more

Expert panel approves use of Serum Institute's Covovax for 7-11-year olds

An expert panel advising the Central Drugs Standard Control Organisation (CDSCO) has recommended granting emergency use authorisation (EUA) to Serum Institute of India’s (SII’s) Covovax for use in children aged 7-11, according to sources. The Drugs Controller General of India (DCGI) will review this recommendation before granting a final approval. Read more

RBI acts in forwards market to protect forex reserves, pulls down premiums

The Reserve Bank of India’s (RBI’s) recent decision to take advance delivery of outstanding long-forward dollar positions points to its desire to protect the fast-depleting foreign exchange (forex) reserves, analysts said. The RBI’s actions have triggered a sharp decline in dollar/rupee forward premiums. Currency analysts who spoke to Business Standard said at a time when significant dollar strength has been pushing the rupee to record lows, the RBI may be wishing to ensure that its forex reserves do not drop below a certain level. Read more