In a strategic move to bolster its quick commerce segment, Zomato has invested an additional ₹1,500 crore into its subsidiary, Blinkit. This infusion aims to enhance Blinkit's operational capabilities amidst intensifying competition in India's rapid delivery market.
Key Details:
- Investment Structure: Blinkit's board approved the issuance of 7,612 equity shares at ₹19,70,181 per share, totaling ₹1,500 crore.
- Total Funding: With this latest infusion, Zomato's total investment in Blinkit has reached ₹4,300 crore since its acquisition in August 2022.
- Operational Expansion: The funds are earmarked for scaling operations, including increasing the number of dark stores to 2,000 by December 2025, a target advanced by a year.
- Financial Performance: In Q3 FY25, Blinkit's revenue surged over 117% year-on-year to ₹1,399 crore, though operational losses widened to ₹103 crore due to aggressive expansion and market competition.
Founders' Background:
- Zomato: Founded in 2008 by Deepinder Goyal, Zomato has evolved from a restaurant discovery platform to a multifaceted food services company. Goyal's vision has steered the company through various expansions, including the foray into quick commerce with Blinkit.
- Blinkit: Originally established as Grofers in 2013 by Albinder Dhindsa and Saurabh Kumar, the company rebranded to Blinkit in 2021 to emphasize its focus on rapid deliveries. Dhindsa, serving as CEO, has been pivotal in driving the company's quick commerce initiatives.
Funding Details:
- Zomato's Financial Strategy: Prior to this investment, Zomato raised ₹8,500 crore through a Qualified Institutions Placement (QIP) in November 2024, strengthening its balance sheet to support strategic ventures like Blinkit.
- Market Dynamics: The quick commerce sector in India is witnessing fierce competition, with players like Swiggy's Instamart, Zepto, and others vying for market share. Zomato's continued investment in Blinkit underscores its commitment to maintaining a leading position in this rapidly growing market.