- Zomato invests Rs 300 crore in Blinkit to boost its quick commerce unit.
- Blinkit faces stiff competition from Swiggy Instamart and Zepto.
- Blinkit plans to expand its dark store count and product range.
Zomato is set to inject Rs 300 crore into its quick commerce unit, Blinkit, as competition intensifies with Swiggy Instamart and Zepto. This investment, reported in a filing with the Registrar of Companies, adds to the Rs 2,300 crore Zomato has already invested since acquiring Blinkit in August 2022. Additionally, Zomato will invest Rs 100 crore in its subsidiary, Zomato Entertainment Pvt Ltd, which handles live events and ticketing.
Blinkit has shown significant growth, reporting revenues of Rs 2,302 crore in fiscal 2024, up from Rs 1,064 crore in FY23. It has also reduced its adjusted Ebitda loss from Rs 203 crore to Rs 37 crore in the January-March 2024 quarter. To further its expansion, Blinkit plans to increase its dark store count from 562 to 1,000 and diversify its product offerings to include apparel, home decor, electronics, sports goods, and home appliances.
The quick delivery sector is becoming increasingly competitive, with Swiggy filing for a Rs 10,414 crore IPO and Zepto in talks to raise $300 million. Despite this, Blinkit has become a major contributor to Zomato’s shareholder value, surpassing the food delivery business in market value. An April report by Goldman Sachs valued Blinkit at Rs 119 per share, contributing $13 billion to Zomato’s overall value.
Zomato’s market capitalisation has grown to over $19 billion, with its stock trading higher on the BSE. Blinkit, which became a unicorn in June 2021, continues to attract significant investment, including a recent $150 million loan from Zomato in March 2022.
