Zomato parent Eternal to acquire 5.4% stake in Mygate via Adonmo share swap

Through an Adonmo share swap worth ₹156 crore, Eternal will obtain a 5.4% stake in Mygate, ahead of the merger they have proposed.

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Eternal, which owns Zomato and Blinkit, will acquire a 5.4% stake in Mygate via a share-swap deal that involves its current investment in Adonmo, a digital advertising company. The transaction is valued at around ₹156 crore and is part of a proposed merger between Adonmo and Mygate.

Through this transaction, Eternal will gain an ownership stake in Mygate, a technology platform used to manage gated residential communities. After the proposed merger, Eternal’s stake is anticipated to drop to roughly 4.4% on a fully diluted basis.

The deal underscores Eternal’s ongoing investment in consumer-focused technology businesses outside its core food delivery and quick-commerce operations.

As per an exchange filing dated October 21, 2026, Eternal will transfer all of its shareholding in Adonmo to Vivish Technologies, the company that runs Mygate. In exchange, Eternal will get shares in Mygate under a share-swap arrangement.

The deal covers the following securities:

• Shares transferred: 11,214 Series B compulsorily convertible preference shares and 10 equity shares in Adonmo.
• Shares received: 184,091 Series C1 compulsorily convertible preference shares and 164 equity shares in Mygate.
• Estimated value: Around ₹156 crore.

Rather than a typical cash acquisition, this deal lets Eternal trade its existing investment for an ownership stake in another company.

Eternal had put in roughly ₹112 crore in Adonmo in January 2022. The proposed share swap will alter the form of its investment while giving it exposure to Mygate’s community management business.

This proposed merger seeks to combine two technology companies whose operations complement each other. Mygate concentrates on managing residential communities, whereas Adonmo runs a digital advertising platform.

Mygate: Technology for Gated Communities

Mygate offers digital solutions for residential societies and gated communities throughout India. Its offerings cover visitor management, security operations, accounting, and resident engagement.

The platform assists residential communities in coordinating day-to-day activities and enhancing communication among residents, security staff, and management committees.

Mygate’s business has likewise shown steady turnover growth. As per the company’s financial disclosures, turnover hit ₹229 crore in FY26, up from ₹171 crore in FY25 and ₹96 crore in FY24.

Adonmo: Digital Advertising via Connected Screens

Adonmo runs a network of connected digital advertising screens in residential communities and other locations.

These screens let brands show advertisements in places where consumers spend their time each day. The platform merges physical advertising infrastructure with technology-driven communication.

Through the proposed merger of Adonmo and Mygate, community management services could be linked with digital advertising capabilities. This combination could open up opportunities for advertisers while broadening the services offered to residential communities.

Under the proposed share swap, Eternal will initially hold a 5.4% stake in Mygate on a fully diluted basis. Its ownership, however, is anticipated to fall to roughly 4.4% once the merger is completed.

This shift is expected because other Adonmo shareholders will also receive shares in the combined Mygate entity. As part of the proposed arrangement, Adonmo will then cease to exist as a separate company.

The stake in the merged entity is presently valued at around ₹156 crore. For Eternal, the deal marks a move from holding shares in a digital advertising company to a minority interest in a broader community management and advertising business.

Still, the transaction does not mean Eternal will gain control of Mygate. Its anticipated 4.4% holding after the merger represents a minority investment.

The turnover reported by Mygate indicates that the company has grown its business over the last three financial years.

In FY26, the company posted turnover growth of roughly 34% relative to FY25. Turnover likewise rose considerably from FY24, which points to a growing business base.

This financial result offers context for Eternal’s choice to swap its Adonmo investment for shares in Mygate. The proposed merger could also assist in bringing together the technology capabilities and business networks of the two companies.

Even so, turnover by itself does not prove profitability. These figures should not be read as net profit, nor as a promise of future growth.

The companies anticipate signing the definitive agreements by October 31, 2026, or earlier. The share-swap transaction is anticipated to close by December 5, 2026, subject to standard closing conditions.

According to its exchange filing, Eternal said the acquisition is not a related-party transaction and does not need government or regulatory approvals.

Nevertheless, the transaction is still contingent on the completion of the necessary agreements and other applicable closing conditions. As a result, the proposed ownership structure could only take effect once the transaction has been completed.

Eternal runs several large consumer-facing businesses, such as Zomato and Blinkit. Through its investment in Mygate, it gains broader exposure to a technology platform that serves residential communities.

This transaction has three key aspects.

1. Investment Diversification

Eternal will swap its Adonmo holding for shares in Mygate. This provides the company with a different kind of exposure to the technology and consumer services market.

Diversification is a risk management approach that distributes your money across various asset classes, industries, and regions in order to lessen the effect that any one investment’s weak performance has on your overall portfolio.

2. Possible Business Synergies

Mygate’s residential community platform and Adonmo’s connected advertising screens have the potential to complement one another. Integrating the two could open up opportunities in digital advertising, resident communication, and technology-driven services.

Business synergies arise when a combined entity generates more value, efficiency, or revenue than its individual parts would on their own.

3. A Minority Interest in a Platform That Is Expanding

Mygate recorded revenue of ₹229 crore in FY26. Eternal’s projected 4.4% stake after the merger will give it exposure to the combined company’s business, though it will not grant Eternal control over its operations.

The real gains will hinge on how the merger is executed, how the business performs going forward, and how well the companies can integrate their operations.

Eternal’s plan to acquire a 5.4% stake in Mygate via an Adonmo share swap represents a notable shift in its investment portfolio. Valued at roughly ₹156 crore, the transaction will swap Eternal’s current Adonmo holding for shares in Mygate.

Once the proposed merger is complete, Eternal’s stake is anticipated to be about 4.4% on a fully diluted basis. At the same time, Mygate’s community management strengths and Adonmo’s digital advertising network may open up new opportunities for both companies.

The deal is anticipated to close by December 5, 2026, subject to customary closing conditions. How well the combined business integrates its services and turns its expanded capabilities into sustainable growth will determine its long-term impact.