Zomato Doubles Down on Quick Commerce with Fresh Investment in Blinkit

zomato & blinkit
Preeti Bali / 6:17 am / June 12, 2024

Zomato, a leading player in the Indian foodtech industry, is making a significant investment in its quick commerce arm, Blinkit. The company is infusing Rs 300 crore ($36 million) into Blinkit to bolster its position in the growing market for rapid delivery of groceries and other essentials. This move comes amidst intensifying competition from rivals like Swiggy Instamart and Zepto.

Beyond Blinkit: Entertainment Gets a Boost

In addition to the Blinkit investment, Zomato is also allocating Rs 100 crore ($12 million) to Zomato Entertainment. This subsidiary manages the company’s live events and ticketing businesses, signaling Zomato’s diversification beyond core food delivery services.

Regulatory Filing Reveals Investment Details

The investment decisions were approved by Zomato’s board and documented in a regulatory filing accessed by the Registrar of Companies. This filing confirms the Rs 300 crore allocation to Blinkit Commerce and the Rs 100 crore commitment to Zomato Entertainment.

Continued Investment in Blinkit

With this most recent imbuement, Zomato’s all out interest in Blinkit has arrived at Rs 2,300 crore ($277 million) since securing the organization in August 2022. Recently known as Grofers, Blinkit was gained by Zomato in an all-stock arrangement esteemed at Rs 4,477 crore ($568 million).

Blinkit’s Profitability Fuels Investment

The fresh capital allocation comes shortly after Zomato’s Q4 results revealed positive developments for Blinkit. The quick commerce platform achieved EBITDA profitability during the quarter, demonstrating its growing financial strength. Additionally, Blinkit’s revenue climbed by 19.4% to Rs 769 crore in Q4 FY24. Zomato’s overall performance also yielded positive results, with the company recording a profit of Rs 175 crore in the last quarter.

Heating Up the Quick Commerce Race

The speedy trade space in India has seen a flood in contest throughout the course of recent years. In late 2021, Swiggy reported a significant venture of $700 million in its Instamart stage. In the mean time, Zepto has forcefully raised reserves, getting $430 million across three subsidizing adjusts and supposedly arranging another. Web based business goliath Flipkart, upheld by Walmart, is likewise looking at the speedy trade market subsequent to getting a $350 million venture from Google.

Blinkit’s Rising Value

Analysts at Goldman Sachs recently suggested that Blinkit’s potential value surpasses Zomato’s current market valuation. Sanjeev Bikhchandani, founder of Info Edge (an early investor in Zomato), also expressed his belief in Blinkit’s future growth during an interview.


More Stories