Mygate, the Indian app that residential communities use to manage visitors, security and maintenance, is merging with AdOnMo, a digital advertising company that runs screens in housing societies. The deal was disclosed on October 21, 2026, when AdOnMo investor Eternal, the parent of Zomato and Blinkit, told the stock exchanges its board had approved swapping its AdOnMo shares for shares in Mygate.
The merger is an all-stock transaction and no cash price was disclosed. Eternal will own about 4.4% of the merged Mygate on a fully diluted basis, a stake it valued at ₹156 crore (about $18 million). Indian Opinion, citing The Economic Times, reported that the combined company is valued at about ₹3,500 crore (about $400 million) with annual revenue of about ₹500 crore (about $57 million).
AdOnMo will cease to exist as a separate company once the merger completes, and its other shareholders will receive shares in the merged Mygate. AdOnMo co-founders Sandeep Bommireddi and Sravanth Gajula will join Mygate's board, Inc42 reported.
What AdOnMo built
AdOnMo runs a digital advertising network of more than 55,000 connected screens across 27 Indian cities, according to Inc42. It sells advertising on screens placed in the shared spaces of residential buildings, such as lobbies, gates, clubhouses and elevators.
Eternal invested ₹112 crore (about $13 million) in AdOnMo in January 2022. At the value Eternal has placed on its stake in the merged company, that investment is now worth 39.3% more than it cost, Inc42 calculated. Neither company disclosed how much AdOnMo had raised in total or who its other investors are.
“Coming together with AdOnMo gives us a powerful new way to enhance security & community living.”
How the share swap works
Under the terms in Eternal's disclosure, Eternal will transfer 11,214 Series B compulsorily convertible preference shares and 10 equity shares of AdOnMo to Vivish Technologies, the company that operates Mygate. In return it receives 1,84,091 Series C1 compulsorily convertible preference shares and 164 equity shares in Mygate, according to Investywise, which reported on the filing.
The exchange is the first step towards the full merger of the two businesses. The transaction is still subject to definitive agreements, customary conditions and statutory approvals. Indian Opinion reported, citing CNBC-TV18, that a share transfer agreement is expected by October 31 and that the deal should be completed by December 5, 2026. Inc42 said the companies declined to comment on the timeline.
Eternal's board approved the transfer of its entire AdOnMo shareholding, so the food delivery group will no longer hold any direct stake in the advertising company.
Why Mygate wants screens
Mygate's app is used by 60 lakh (6 million) households across 30,000 residential communities, according to Inc42. Advertising inside the app is already one of its revenue lines, and chief executive and co-founder Abhishek Kumar said the merger would let the company move beyond in-app ads into physical advertising inside housing societies, where AdOnMo already operates.
"Coming together with AdOnMo gives us a powerful new way to enhance security & community living," Kumar said.
Mygate was co-founded by Kumar, Vijay Arisetty and Rohit Jindal, who was elevated to co-founder in June 2025. Eternal's disclosure put Mygate's turnover for the financial year to March 2026 at ₹229 crore (about $26 million), up 33% from ₹171 crore a year earlier. Kumar told Inc42 the top line was ₹232 crore with an EBITDA margin of 10% to 12%.
Arisetty moved from an advisory role in 2024 to focus on Aurm, according to Inc42, leaving Kumar and Jindal to run the business that will absorb AdOnMo.
Fresh capital before the deal
Mygate recently raised ₹225 crore from Dharana Capital, Inc42 reported. The merger lets it add an advertising business with an existing screen network without spending cash, since AdOnMo's shareholders are paid in Mygate stock.
For Eternal, the deal turns a minority holding in a single advertising startup into a smaller stake in a larger company that combines software used by residents with advertising sold to brands.
