Zomato has invested ₹500 crore (nearly $60 million) in its quick commerce branch, Blinkit. This recent funding round gets Zomato’s total investment in Blinkit to ₹2,800 crore. This happened from the time the company acquired it in August 2022. The investment comes at an important time as competition in the huge grocery delivery space heats up.
PC: Business Standard
Details of the Investment
According to regulatory filings accessed from the Registrar of Companies, Blinkit’s board has agreed to the issuance of 2,537 equity shares at an issue price of ₹19,70,181, each to raise the ₹500 crore. This monetary investment follows Zomato’s successful fundraising of ₹8,500 crore through a Qualified Institutional Placement (QIP) in November 2024. This is aimed to strengthen its financial position and support strategic initiatives, particularly in the quick commerce segment through Blinkit.
It has been just seven months since the last capital investment from Zomato into Blinkit. The food delivery platform, formerly known as Grofers, was previously acquired and funded ₹300 crore ($36 million) in June 2024.
Growth and Performance at Blinkit
Blinkit has grown very well. Revenue from operations has grown by 129% in the July-September quarter to ₹1,156 crore, up from ₹504 crore in the same period last year. Gross order value growth was primarily driven by order frequency and the addition of new stores, which have contributed significantly to the overall revenue of the company.
However, Blinkit had reported EBITDA losses of ₹8 crore for the same quarter, marking a significant reduction from the EBITDA loss reported at ₹125 crore in the previous year. This shows that even though the company is expanding, it still suffers losses.
Competitive Landscape
The fast commerce sector is getting very competitive. Competitions with Swiggy’s Instamart and Lightspeed-backed Zepto being the other fighting for the market share. Swiggy recently raised ₹4,500 crore through its IPO, further intensifying the competition in the space. Zomato has stressed Blinkit as an important part of its business strategy, which it intends to scale up very significantly.
Blinkit has also entered the food delivery space with Bistro, a new platform that aims to deliver food in 10 minutes, which is directly in competition with the offerings of Swiggy and Zepto.
In conclusion, this investment by Zomato into Blinkit really underlines how the company seeks to strengthen its quick commerce division in the midst of increasing competition. With adequate financing and innovation push, Blinkit is all set to increase market presence and continue with its growth story in the changing grocery delivery ecosystem.
