Team Blitz India
NEW DELHI: Gurgaon-basedZomato will infuse fresh capital of Rs 300 crore into its quick commerce business, Blinkit, according to a regulatory filing with the Registrar of Companies, according to a report in The ET.
With this latest investment, Zomato has invested a total of Rs 2,300 crore in Blinkit since acquiring the company in August 2022. Zomato had purchased Blinkit, formerly known as Grofers, in an all-stock deal valued at Rs 4,477 crore.
Additionally, Zomato will invest Rs 100 crore in its subsidiary, Zomato Entertainment Private Limited, which operates the company’s live events and ticketing businesses.
The latest investment in Blinkit comes at a time when competition in the quick commerce sector is intensifying, with Blinkit competing against SwiggyInstamart and Zepto, which is backed by Nexus Venture Partners.
Swiggy, which also competes with Zomato in the food delivery and dining out segments, has filed draft papers with the market regulator for its Rs 10,414-crore initial public offering (IPO). Meanwhile, Zepto is in discussions to raise funding of $300 million.
The quick delivery segment is also expected to see the entry of horizontal e-commerce players such as Flipkart.
In FY24, Blinkit reported revenues of Rs 2,302 crore, more than double the Rs 1,064 crore reported in FY23.
During Zomato’s quarterly earnings report in May, the company announced that Blinkit would undergo a significant expansion, increasing its number of dark stores to 1,000 from 562 stores as of March 31.
The quick commerce platform is also diversifying its product categories, having already entered segments such as apparel, home decor, consumer electronics, sports goods, and home appliances, which are typically sold by larger online marketplaces such as Amazon and Flipkart.
