Food delivery platform Zomato has mentioned that it will be investing an additional Rs 300 crore in its rapid commerce venture Blinkit, as per the Economic Times. This is as per a regulatory filing by the Registrar of Companies.
Ever since Zomato acquired the company in 2022, it has invested Rs 2,300 crore in Blinkit. The board of Zomato authorized the company's acquisition of Blinkit, formerly Grofers, a fast-commerce firm, for a total of 4,447 crore, or roughly $570 million, in stock in June 2022. Zomato owned 9 percent of Blinkit before purchasing the entire firm in 2022.
An investment of Rs 100 crore will also be made in Zomato Entertainment Pvt. Ltd. by Zomato, as per the report. Established in 2018, Zomato Entertainment Pvt. Ltd. is engaged in the events and entertainment sector.
Zomato has been increasing its focus on the quick commerce platform Blinkit. The company plans to have around 1,000 dark stores by March 2025. It aims to increase its presence in other cities, including Hyderabad, Mumbai, and Bengaluru. As of March 31st, Blinkit had 526 stories.
Read: Macquarie Predicts Nearly 50% Decline in Zomato Shares: Report
Speaking about the company’s expansion plans, Albinder Dhindsa, Blinkit chief executive, said, “With this aggressive store expansion planned, the overall adjusted EBITDA in our business is likely to hover around zero for the next few quarters.”
Meanwhile, in its March 31, 2024, financial results, it was shown that Blinkit’s revenue from operations increased from Rs 806 crore in the last fiscal to Rs 2,301 crore now. Zomato also mentioned that the Quick Commerce platform turned EBITDA positive in March 2024.
Zomato’s focus on Blinkit is coming at a time when there has been increasing competition in the quick commerce platform. New companies such as Flipkart and Reliance Retail’s JioMart are also eyeing the opportunity the opportunity to enter the quick commerce platform. Similarly, Swiggy recently confidentially filed its IPO paper with the Securities and Exchange Board of India, SEBI. Additionally, quick commerce platform Zepto is in talks to raise at least $300 million from investors.
