Mygate and Adonmo Plan Merger, Giving Eternal 4.4% Worth ₹156 Crore Against ₹112 Crore Invested
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Mygate and Adonmo Plan Merger, Giving Eternal 4.4% Worth ₹156 Crore Against ₹112 Crore Invested
Eternal swaps its entire Adonmo holding for Mygate shares. The stake is up 39.3% on cost after almost four years, and neither company's valuation has been published.
Eternal, the listed parent of Zomato and Blinkit, will swap its entire stake in the digital advertising firm Adonmo for shares in the residential-community platform Mygate, leaving it with about 4.4% of the merged company on a fully diluted basis. The two startups announced the proposed merger in a joint statement on Oct. 21, according to Inc42.
Eternal values the stake at ₹156 crore. It put ₹112 crore into Adonmo in January 2022, so the holding is worth 1.39 times cost.
The share swap
Entrackr, citing a regulatory filing dated Oct. 21, gave the instruments. Eternal transfers 11,214 Series B compulsorily convertible preference shares and 10 equity shares of Adonmo to Mygate. In return it receives 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares of Mygate.
Adonmo will cease to exist as a separate entity, and its other shareholders become Mygate shareholders. No cash changes hands. Eternal's disclosures point to completion by Dec. 5, Inc42 said, and the companies declined to comment on timing in that report. The deal still needs definitive agreements and statutory approvals.
What each side brings
Mygate sells visitor management, security, accounting and community engagement software to gated residential communities. Inc42 puts it at 60 lakh households across 30,000 communities. Adonmo, founded in 2016 according to Entrackr, runs cloud-connected advertising screens in those communities, and Inc42 counts more than 55,000 screens in 27 cities.
Entrackr describes Adonmo's screens as sitting across residential communities, the same kind of site Mygate serves. Adonmo's revenue and losses are not in either report.
| Mygate | Adonmo | |
|---|---|---|
| Founded | Not stated | 2016 |
| Footprint | 60 lakh households, 30,000 communities | 55,000+ screens, 27 cities |
| FY26 turnover | ₹229 crore | Not disclosed |
Mygate's growth
Entrackr reports Mygate's turnover at ₹96 crore in FY24, ₹171 crore in FY25 and ₹229 crore in FY26. Entrackr calls the latest year 34% growth and Inc42 says 33%; the arithmetic is 33.9%.
- FY2496 ₹ crore
- FY25171 ₹ crore
- FY26229 ₹ crore
Source: Entrackr, Oct. 21, 2026, citing Eternal's filing; accessed 2026-10-21
Inc42 adds that Mygate CEO and cofounder Abhishek Kumar had said earlier that FY26 closed with a top line of ₹232 crore and a 10 to 12% EBITDA margin. That is ₹3 crore above the figure in Eternal's filing, and the two reports do not reconcile it. Turnover and top line may be measured differently.
The valuation nobody printed
Neither outlet gives a valuation for the combined company. Dividing ₹156 crore by 4.4% implies about ₹3,545 crore, which is a calculation made here, not a reported figure, and it assumes the 4.4% and ₹156 crore refer to the same fully diluted base.
Against Mygate's ₹229 crore of FY26 turnover that would be roughly 15 times. The multiple overstates the price, because the merged company also contains Adonmo's revenue, which is unreported.
Inc42 says Mygate raised ₹225 crore from Dharana Capital. It also says Sandeep Bommireddi and Sravanth Gajula, Adonmo's cofounders, will join Mygate's board as cofounders. For comparison with another Indian company filing, see Even Healthcare's $50 million Series B, and for sector-wide funding counts, Q3 fintech funding.
The date to watch is Dec. 5, the completion date Eternal's disclosures point to. Neither report names the approvals still outstanding.
Sources
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