India, Oct. 21 -- Zomato and Blinkit parent Eternal has approved a deal to exchange its entire shareholding in digital advertising platform AdOnMo for shares in community management platform Mygate, as part of a proposed merger between the two startups.

Eternal, in an exchange filing, said it would eventually own around 4.4% of the merged Mygate entity on a fully diluted basis. The stake is currently valued at Rs.156 Cr.

Eternal had invested Rs.112 Cr in AdOnMo in January 2022. The current valuation of the proposed Mygate holding represents a 39.3% increase over that investment, although the transaction involves an exchange of shares rather than a cash payout.

Under the deal, Eternal will transfer 11,214 Series B CCPS and 10 equity sha...