AdOnMo to merge with Mygate; Eternal to hold 4.4% of combined firm
By Arjun MehtaSenior Business Editor, Peepals Business
Representative image: wal_172619 / Pixabay
AdOnMo will merge with Mygate in a share swap approved by Eternal's board; Eternal gets about 4.4% of the combined firm, valued near Rs 156 crore.
What Happened
AdOnMo, a digital out-of-home advertising company, is set to merge with Mygate, the housing-society management app, under a proposal approved by the board of Zomato's parent company Eternal around October 21, 2026. Eternal, an investor in AdOnMo, will transfer its entire AdOnMo holding to Mygate in exchange for Mygate shares, giving it an estimated 4.4% stake in the combined company on a fully diluted basis, valued at about Rs 156 crore. No cash will change hands. The share-transfer agreement is expected to be signed by October 31, with completion targeted for December 5, 2026, subject to approvals.
Key Facts
- Deal: AdOnMo to merge with Mygate through a share exchange, with no cash payout.
- Eternal will swap its AdOnMo holding, 11,214 Series B compulsorily convertible preference shares and 10 equity shares, for Mygate preference and equity shares.
- Eternal's resulting stake: about 4.4% of the combined entity, fully diluted, valued at about Rs 156 crore; it had invested Rs 112 crore in AdOnMo in January 2022.
- Timeline: share-transfer agreement expected by October 31, 2026; completion targeted for December 5, 2026, subject to definitive agreements and statutory approvals.
- AdOnMo co-founders Sandeep Bommireddi and Sravanth Gajula are to join Mygate's board.
- Reach: Mygate is used by about 60 lakh households; AdOnMo runs more than 55,000 digital screens in 27 cities, according to reports.
Why It Matters
The deal brings together two businesses that both depend on where people live and move. Mygate is an app that housing societies use to run their day-to-day affairs, and reports say it reaches about 60 lakh households. AdOnMo runs digital advertising screens in public and semi-public places. Combining them gives advertisers a way to reach residents both on their phones inside housing societies and on screens they pass in daily life.
The logic is about advertising money. An app with millions of resident users is valuable to brands that want to reach households in specific neighbourhoods, and a network of more than 55,000 screens adds a physical channel to the same audience. The merged company can sell both together.
For Eternal, best known for Zomato and Blinkit, the swap turns a stake in a smaller advertising company into a stake in a larger combined business, without spending cash. The paper value, Rs 156 crore against the Rs 112 crore it invested in 2022, shows a modest gain on its original bet.
For the wider start-up ecosystem, the merger reflects a phase in which companies with overlapping customers combine to cut costs and build scale instead of raising fresh money alone. It also shows start-ups looking to hyperlocal advertising, aimed at specific neighbourhoods, as a source of revenue.
Several things remain to be settled. The deal still needs definitive agreements and statutory approvals, and the reports do not give the combined company's financials or say how residents' data will be handled as advertising grows. Those details will matter to housing societies and to the advertisers the merged company hopes to attract.
| Item | Detail |
|---|---|
| Merging companies | AdOnMo into Mygate |
| Payment | Share exchange, no cash |
| Eternal's stake after deal | about 4.4%, valued near Rs 156 crore |
| Eternal's original investment | Rs 112 crore (January 2022) |
| Expected completion | December 5, 2026 |
Impact
Short-term: Eternal and Mygate are expected to sign the share-transfer agreement by October 31. Advertisers can expect combined offers that pair app placements with screen networks.
Long-term: If the combined company grows its advertising business, it could become a significant player in hyperlocal and out-of-home advertising and a candidate for further fundraising or a public listing.
Who is affected: Residents and housing societies using Mygate, advertisers and media buyers, AdOnMo and Mygate employees and investors, and Eternal's shareholders.
Key Takeaway
AdOnMo is merging with Mygate in a cashless share swap that leaves Zomato parent Eternal with about 4.4% of the combined company, a bet that housing-society apps and digital screens can grow together on advertising.
Questions and Answers
What is the AdOnMo-Mygate merger?
AdOnMo, a digital out-of-home advertising company, is to merge with Mygate, a housing-society management app, through a share exchange approved by Eternal's board around October 21, 2026.
What stake will Eternal get in the merged company?
About 4.4% on a fully diluted basis, valued at roughly Rs 156 crore, in exchange for its AdOnMo holding. It had invested Rs 112 crore in AdOnMo in 2022.
When will the AdOnMo-Mygate deal be completed?
The share-transfer agreement is expected by October 31, 2026, and completion is targeted for December 5, 2026, subject to approvals.
Will any cash be paid in the deal?
No. It is a share exchange; Eternal receives Mygate shares instead of cash.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
By Arjun Mehta, Senior Business EditorCovers Start-ups & Opportunities and more for Peepals Business. All stories by Arjun Mehta
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Arjun Mehta is a pen name of the Peepals Global Editorial Team, which researches, fact-checks and publishes every story. The portrait is an illustration.
