AdOnMo to merge with Mygate; Eternal to get 4.4% stake in entity

Community management startup Mygate and adtech company AdOnMo are set to merge, bringing together their residential community platform and digital advertising network. Following the merger, Eternal is expected to hold a 4.4% stake in the combined entity.

As per a media report, the development follows approval from Eternal’s board to transfer its entire shareholding in AdOnMo to Mygate as part of the proposed merger. The transaction is subject to customary conditions and statutory approvals.

Eternal’s proposed stake in the combined entity is valued at around Rs 156 crore on a fully diluted basis. The company had invested Rs 112 crore in AdOnMo in January 2022, putting the current value of its proposed holding 39.3% above its original investment. The transaction will be executed through a share exchange rather than a cash payout.

According to Eternal’s disclosures, Mygate’s turnover increased 33% to Rs 229 crore in FY26 from Rs 171 crore in FY25. Mygate CEO and co-founder Abhishek Kumar had earlier said the startup closed FY26 with revenue of Rs 232 crore and an EBITDA margin of 10–12%.

The deal is expected to be completed by December 5, according to Eternal’s disclosures, although the companies have not commented on the timeline.

Following the merger, AdOnMo co-founders Sandeep Bommireddi and Sravanth Gajula will join Mygate’s board as co-founders to build and scale the combined business.

Gajula said discussions around the merger began about a year ago, with both companies exploring opportunities to combine their presence across residential communities and other high-engagement environments. The discussions gathered pace over the past six months as the teams evaluated potential synergies.

The combined entity will bring together Mygate’s community platform, which serves 60 lakh households across 30,000 residential communities, and AdOnMo’s network of more than 55,000 connected digital screens across 27 cities.

The merger is expected to create opportunities for resident welfare associations to use Mygate’s community management services alongside digital screens installed in common areas such as lobbies, gates, clubhouses and elevators. These screens can carry important updates for residents while also creating opportunities to monetise shared spaces through advertising.

Kumar said the integration would strengthen security and community living by providing digital screen infrastructure to share critical updates and information, while maintaining residents’ trust and privacy.

The merger follows Mygate’s recent Rs 225 crore fundraise from Dharana Capital. The startup is looking to expand its presence across gated communities and strengthen its integrated platform.

Mygate has also undergone leadership changes in recent years. In 2024, co-founder Vijay Arisetty moved away from his advisory role to focus on Aurm. In June 2025, the company elevated Chief Business Officer Rohit Jindal to the position of co-founder.