Zomato Invests INR 500 Cr in Blinkit

-Blinkit reported a 129% YoY revenue increase, reaching INR 1,156 Cr for Q2 FY25.

-Since acquiring Blinkit (formerly Grofers) in August 2022, Zomato has invested a total of INR 2,800 Cr into the quick commerce business.

-Zomato's recent investment in Blinkit follows its November 2023 raise of INR 8,500 Cr through a qualified institutional placement (QIP).

Gurgaon-based foodtech aggregator, Zomato has invested INR 500 Cr in its quick commerce business arm Blinkit, according to a regulatory filing made with the Registrar of Companies (RoC).

Since acquiring Blinkit (formerly Grofers) in August 2022, Zomato has invested a total of INR 2,800 Cr into the quick commerce business. The acquisition, valued at INR 4,477 Cr, was completed through an all-stock deal.

Zomato's recent investment in Blinkit follows its November 2023 raise of INR 8,500 Cr through a qualified institutional placement (QIP) to strengthen its balance sheet amidst growing competition. 

Blinkit faces increasing pressure from rivals such as Swiggy (which runs Instamart), Zepto, Flipkart's Minutes, BigBasket, and Amazon, all competing in the quick commerce market.

To combat this, Blinkit is rapidly expanding its operations, aiming to open 1,000 dark stores by March 2025 and 2,000 by December 2026, The Economic Times reported. 

The company has also ventured into food delivery with Bistro, a 10-minute food delivery service that competes with Swiggy’s SNACC and Zepto Cafe.

Blinkit reported a 129% YoY revenue increase, reaching INR 1,156 Cr for Q2 FY25, though it posted a small EBITDA loss of INR 8 Cr. 

Zomato had previously held a 9% stake in Blinkit before acquiring the platform fully in 2022 and had also provided Blinkit with funding through convertible notes and loans in 2021 and 2022.