loading
loading
Community management startup Mygate and adtech startup AdOnMo are set to merge, the startups said in a joint statement today. The statement came after Eternal's board approved a deal to transfer its entire shareholding in the digital advertising platform to Mygate, as part of a proposed merger between the two startups. Post the merger, which is subject to customary conditions precedent and necessary statutory approvals, Eternal will own around 4.4% of the merged Mygate entity on a fully diluted basis, with its stake currently valued at ₹156 Cr. Eternal had invested ₹112 Cr in AdOnMo in January 2022, making the current value of its proposed holding 39.3% higher than its original investment. The transaction involves a share exchange rather than a cash payout. Mygate's FY26 turnover rose 33% to ₹229 Cr from ₹171 Cr in FY25, as per Eternal. Speaking with Inc42 earlier this year, Mygate CEO Abhishek Kumar claimed that the startup closed FY26 with a top line of ₹232 Cr with an EBITDA margin of 10-12%. As per Eternal’s disclosures, the deal is expected to fructify by December 5. However, the companies refrained from commenting on the timeline. Post the merger, AdOnMo’s cofounders, Sandeep Bommireddi and Sravanth Gajula, will join Mygate’s board as cofounders to build and scale the combined company. Speaking to Inc42, AdOnMo cofounder Sravanth Gajula said merger discussions began about a year ago, with both startups exploring ways to combine their presence across residential communities and other high-engagement environments. The talks gained momentum over the past six months as the teams explored potential synergies. The combined entity will bring together Mygate's community platform, which is used by 60 Lakh households across 30,000 residential communities and AdOnMo's network of more than 55,000 connected digital screens across 27 cities. The combined entity can now not only offer resident welfare associations (RWAs) the best-in-class community management platform but also a passive, non-intrusive way to monetise common areas such as lobbies, gates, clubhouses and elevators. "Coming together with AdOnMo gives us a powerful new way to enhance security & community living. Communities gain an integrated digital screen infrastructure to communicate critical updates and information effortlessly with residents—all while we continue to uphold the trust and privacy our community residents expect from us," Mygate CEO and cofounder Abhishek Kumar said. The merger comes shortly after a fresh fund raise for Mygate, which saw it raise ₹225 Cr from Dharana Capital. The startup is currently looking to expand its footprint across gated communities and strengthen its integrated platform. Important to highlight that Mygate has also seen leadership changes over the past few years. In 2024, cofounder Vijay Arisetty transitioned from his advisory role to focus on Aurm. In June 2025, Mygate elevated its chief business officer, Rohit Jindal, to cofounder.
document fetched 2026-10-22 03:02 · canonical https://inc42.com/buzz/eternal-to-swap-adonmo-stake-for-mygate-shares-in-proposed-merger-deal