India, Oct. 21 -- Community management startup Mygate and adtech startup AdOnMo are set to merge, the startups said in a joint statement today.

The statement came after Eternal's board approved a deal to transfer its entire shareholding in the digital advertising platform to Mygate, as part of a proposed merger between the two startups.

Post the merger, which is subject to customary conditions precedent and necessary statutory approvals, Eternal will own around 4.4% of the merged Mygate entity on a fully diluted basis, with its stake currently valued at Rs.156 Cr.

Eternal had invested Rs.112 Cr in AdOnMo in January 2022, making the current value of its proposed holding 39.3% higher than its original investment. The transaction involves...