Eternal Acquires Stake in Mygate

Eternal, which was previously known as Zomato, is set to obtain an approximately 4.4% stake in Mygate. This acquisition will occur on a fully diluted basis via a share swap that includes its entire investment in Adonmo, as per a regulatory filing from October 21. The stake in the combined Mygate entity is valued at Rs 156 crore. In January 2022, Eternal invested Rs 112 crore in Adonmo.

Details of the Transaction

As part of this transaction, Eternal will transfer 11,214 Series B compulsorily convertible preference shares and 10 equity shares it holds in Adonmo to Mygate. In return, Eternal will receive 1,84,091 Series C1 compulsorily convertible preference shares along with 164 equity shares in Mygate. This acquisition is part of the planned merger between Mygate and Adonmo. Upon completion, other Adonmo shareholders will also transition to become shareholders in the merged Mygate entity, while Adonmo will no longer operate as a separate entity.

About Adonmo and Mygate

Founded in 2016, Adonmo runs an ambient digital advertising platform featuring a cloud-connected network of screens within residential communities. Mygate, on the other hand, offers technology solutions tailored for gated residential areas, providing services that include visitor management, security, accounting, and enhancing community engagement for residents.

Mygate’s Performance

Mygate recently recorded a significant 34% year-on-year rise in turnover, reaching Rs 229 crore in FY26. This marks an increase from Rs 171 crore in FY25 and Rs 96 crore in FY24, as highlighted in the filing. The upcoming transaction is contingent upon the finalisation of definitive agreements and the meeting of customary closing conditions.