New Delhi, Oct. 22 -- Hyderabad-based AdOnMo Pvt Ltd is set to merge with Bengaluru-based residential community management platform Mygate, operated by Vivish Technologies Pvt Ltd.

Once the merger is complete, AdOnMo's shareholders will become shareholders of Mygate, and AdOnMo will cease to exist as a separate entity.

AdOnMo founders Sandeep Bommireddi and Sravanth Gajula will join Mygate's board as co-founders, Mygate said. The merged entity is valued at about Rs 3,500 crore ($369.2 million).

As part of the merger, Eternal Ltd, the parent of Zomato and Blinkit and AdOnMo's largest external shareholder, will transfer its entire stake to Mygate. In exchange, Eternal will initially receive a 5.4% stake in Mygate on a fully diluted basis through the share-swap agreement, which will subsequently decline to about 4.4% following the completion of the merger. Eternal had valued its stake in AdOnMo at Rs 156 crore in January 2022.

Mygate offers software that housing societies use to manage visitor entry, security, accounting and resident communication. It also operates an advertising platform that allows brands to reach residents through its app. The company says it serves more than 27,000 residential communities, covering about 5.7 million homes.

AdOnMo operates a network of about 55,000 cloud-connected digital screens that display targeted advertisements, primarily in residential complexes and office parks.

The merger will give Mygate a physical advertising network within the same communities it already serves through its app.

Mygate was incorporated in January 2016 and co-founded by Vijay Arisetty, Abhishek Kumar, who is now its chief executive, and Shreyans Daga. Its investors include Prime Venture Partners, Tiger Global, Tencent, JS Capital and Dharana Capital, among others.

Mygate's revenue rose 34% to Rs 229 crore in FY26 from Rs 171 crore a year earlier, according to the filing. It had posted revenue of Rs 96 crore in FY24.

AdOnMo was founded in 2017. Besides Eternal, its backers include BAce Capital and Astarc Ventures, which invested at the seed stage. Singapore-based Rigel Capital and Indonesia's Sinar Mas led its $25 million funding round in 2024.

Published by HT Digital Content Services with permission from VC Circle.