Community management startup myGate and adtech startup AdOnMo have announced a proposed merger in a joint statement, in one of the most closely watched startup ecosystem moves of the week. The deal was revealed on October 21, 2026, after Eternal's board approved transferring its entire AdOnMo shareholding to Mygate.
Post the merger, which is subject to customary conditions precedent and statutory approvals, Eternal — the parent of Zomato and Blinkit — will own around 4.4% of the merged Mygate entity on a fully diluted basis, with its stake currently valued at ₹156 crore. Eternal had invested ₹112 crore in AdOnMo in January 2022, making the current value of its proposed holding 39.3% higher than its original investment. The transaction is a share exchange rather than a cash payout.
The combined entity brings together Mygate's community platform, used by 60 lakh households across 30,000 residential communities, with AdOnMo's network of more than 55,000 connected digital screens across 27 cities — opening a passive, non-intrusive way for resident welfare associations to monetise lobbies, gates, clubhouses and elevators.
What the Mygate-AdOnMo merger signals for startup funding in India
AdOnMo cofounders Sandeep Bommireddi and Sravanth Gajula will join Mygate's board. Mygate's FY26 turnover rose 33% to ₹229 crore from ₹171 crore in FY25, as per Eternal; CEO Abhishek Kumar said the company closed FY26 with a top line of ₹232 crore and an EBITDA margin of 10–12%. The deal, expected to fructify by December 5, 2026, follows Mygate's recent ₹225 crore raise from Dharana Capital.
Why it matters for founders
This is consolidation with a thesis: distribution plus monetisation infrastructure, funded by a share swap rather than cash. For founders sitting on adjacent networks, mergers like this show that combining reach with an ad stack can unlock value neither company could capture alone.