Indian food delivery platform Zomato is set to bolster its quick commerce arm Blinkit with a Rs3bn ($35m) investment.
The investment marks Zomato’s continued commitment to the quick commerce space, bringing its total capital infusion in Blinkit to Rs23bn since the acquisition in August 2022, as reported by the Economic Times, citing filings made with the Register of Companies.
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Zomato acquired Blinkit, previously known as Grofers, in a Rs44bn all-stock deal.
Zomato had not made a public response to the development.
Blinkit’s financial performance has shown significant growth, with revenues for fiscal year 2024 reaching Rs23bn, a substantial increase from Rs10bn in the fiscal year 2023.
The company’s adjusted earnings before interest, taxation, depreciation and amortisation have seen a marked reduction, dropping to Rs370m in the January to March 2024 quarter from Rs2.03bn in the same period of the previous year.
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By GlobalDataThe latest capital infusion comes as Blinkit faces stiff competition from rivals such as Swiggy Instamart and Nexus Venture Partners-backed Zepto in the rapidly evolving quick commerce sector.
Swiggy recently filed draft papers for a Rs104.14bn initial public offering (IPO). The Economic Times reported in April 2024 that Zepto was holding talks to secure Rs25bn in funding.
In May, alongside its quarterly earnings, Zomato revealed Blinkit’s plans to expand its dark store network to 1,000 outlets from the 562 operational as of 31 March.
Before its acquisition, Blinkit had raised $100m from Zomato through convertible notes in March 2022.
In the same month, Zomato also extended a $150m loan to the delivery startup.
Beyond its investment in Blinkit, Zomato is channeling Rs1bn into another subsidiary, Zomato Entertainment, which oversees the company’s live events and ticketing business ventures.
