Published: 22 October 2026
StartupFeed Quick Take
- The Mygate AdOnMo merger gives Eternal about 4.4% of the combined company, a stake worth Rs 156 crore.
- That price implies a value of about Rs 3,545 crore for the merged company, by our own sum.
- The deal is set to close by December 5, 2026, after which AdOnMo stops existing as a separate company.
Bengaluru-based Mygate will merge with ad network AdOnMo, and two AdOnMo co-founders join the Mygate board, under a deal announced on October 21.
Eternal’s exchange filing of October 21 puts its stake in the merged Mygate at 4.4%, worth Rs 156 crore. Eternal paid Rs 112 crore for its AdOnMo holding in January 2022. The paper gain is 39.3%.
Divide that Rs 156 crore by 4.4% and the merged company is worth about Rs 3,545 crore. We did that sum ourselves. The filing does not print it.
What the Mygate AdOnMo Merger Actually Moves
The Mygate AdOnMo merger moves Eternal’s whole AdOnMo holding to Vivish Technologies, the Bengaluru company that runs Mygate. Eternal hands over 11,214 Series B compulsorily convertible preference shares, or CCPS, and 10 equity shares.
In return Eternal gets 1,84,091 Series C1 CCPS and 164 equity shares in Mygate. That is 5.4% of Mygate on a fully diluted basis. The merger then cuts it to about 4.4%.
The share transfer agreement is due on or before October 31, 2026. The deal itself is set to close by December 5, 2026. AdOnMo then stops existing as a separate company.
AdOnMo’s other investors become investors in the merged Mygate. No cash changes hands anywhere in the swap.
Rs 3,545 Cr: The Price Nobody Printed
Eternal’s 5.4% in Mygate alone is worth Rs 156 crore, which puts Mygate at about Rs 2,889 crore. The same Rs 156 crore buys 4.4% of the merged company. That implies about Rs 3,545 crore.
The gap is about Rs 656 crore. That is what AdOnMo’s side of the merger is worth on these numbers. AdOnMo has never published its revenue, so nobody can check the multiple.
| Measure | Before the merger | After the merger |
|---|---|---|
| Eternal’s stake | 5.4% of Mygate | About 4.4% of the merged company |
| Value of that stake | Rs 156 crore | Rs 156 crore |
| Implied company value | About Rs 2,889 crore | About Rs 3,545 crore |
Mygate closed FY26 with revenue of Rs 232 crore, co-founder and chief executive Abhishek Kumar told Inc42 earlier this year. He put the EBITDA margin at 10% to 12%.
At Rs 2,889 crore, Mygate alone sits at about 12.5 times that revenue. EBITDA means earnings before interest, taxes, depreciation and amortisation.
What Mygate and AdOnMo Each Bring
Mygate runs the visitor and security app used in 30,000 housing societies. The joint statement from Mygate and AdOnMo puts its reach at 60 lakh households.
Abhishek Kumar framed the fit this way:
“Coming together with AdOnMo gives us a powerful new way to do that.”
Abhishek Kumar, co-founder and chief executive, Mygate. From the joint statement, October 21, 2026.
AdOnMo was founded in 2016 and runs more than 55,000 connected screens across 27 cities. Those screens sit in society lobbies, lifts, tech parks, malls and metro stations.
Mygate raised Rs 225 crore in June 2026, in a round led by Dharana Capital. That money arrived four months before this merger was announced.
Sravanth Gajula has said talks began about a year ago. So the June round was raised while the merger was already being discussed.
Mygate sells software to societies. AdOnMo sells screen time to brands. The merged company will sell both to the same gate.
Two New Co-Founders on the Mygate Board
Sandeep Bommireddi and Sravanth Gajula join the Mygate board as co-founders once the merger closes. Both founded AdOnMo in 2016.
Abhishek Kumar stays co-founder and chief executive of Mygate. Rohit Jindal, then chief business officer, was made a co-founder in June 2025.
Vijay Arisetty, who started Mygate, stepped back from his advisory role in 2024 to work on Aurm. Mygate has added three co-founders in sixteen months. We counted them ourselves.
Eternal‘s filing does not mention a board seat for its 4.4% stake. It lists share counts, a value and two dates.
Board seats matter here because AdOnMo’s owners are taking shares, not cash. The two co-founders will sit on the board that sets what the merged company charges for a society screen.
Why Eternal Took Shares and Not Cash
Eternal received no money in this deal. It swapped one holding it cannot sell easily for another.
The Rs 44 crore paper gain over four years and nine months only becomes money if Mygate lists or the shares are sold. Mygate has announced no listing plan.
Eternal first put money into AdOnMo in January 2022. It is leaving that business four years and nine months later, holding paper instead of cash.
The same board meeting on October 21 approved moving Eternal’s going-out India business into a wholly owned arm. Eternal also reported September-quarter net profit of Rs 125 crore that day.
Profit rose 92.3% on revenue of Rs 24,138 crore. Against those figures, a Rs 156 crore stake is small.
What this means for you: If you buy ads for a D2C brand, one seller will soon control both the Mygate app and 55,000 society screens. Ask your media agency before December 5 what a combined society package will cost you.
StartupFeed Insight
The number to watch is not Rs 156 crore. It is Rs 656 crore, the gap between what Eternal’s stake implies for Mygate alone and for the merged company. That gap is what AdOnMo’s side is worth on these figures, and AdOnMo has never published a revenue number anyone can check. Brands should watch the price list, not the paperwork. Mygate charges societies a software fee and AdOnMo charges brands for screen time, and those two prices now sit with one seller. If the deal closes by December 5 as planned, expect a single society rate card from Mygate before 31 March 2027.
By Avinash Mishra, Business Correspondent
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