HomeBusiness NewsCompanies NewsZomato pumps another ₹300 crore into Blinkit amid intensifying quick commerce battle
Zomato pumps another ₹300 crore into Blinkit amid intensifying quick commerce battle
The additional Rs 300 crore from Zomato will bolster Blinkit's efforts to stay ahead in the competitive quick commerce industry. With robust expansion plans and increasing competition from both established and emerging players, Blinkit's ability to innovate and scale will be crucial in maintaining its lead.
Zomato is set to infuse ₹300 crore into its quick commerce subsidiary, Blinkit, as competition heats up in the quick commerce segment. This latest tranche brings Zomato's total investment in Blinkit to ₹2,300 crore, according to filings sourced from Tofler.
Zomato had initially acquired Blinkit, previously known as Grofers, in a 2022 deal valued at ₹ 4,447 crore. The acquisition was a strategic move to rescue the struggling platform. Under the leadership of Albinder Dhindsa, Blinkit has since transformed into a significant driver of shareholder value for Zomato, now overshadowing its food delivery business in growth potential.
The new funding will fuel Blinkit's aggressive expansion plans. The company aims to nearly double its store count by adding 474 new dock stores over the next 12 months. This expansion is part of Blinkit's strategy to cement its position in the quick commerce market and outpace its competitors.
The quick commerce segment is becoming increasingly crowded and competitive. Swiggy, a major rival, is gearing up for its Initial Public Offering (IPO) on Dalal Street, anticipated to take place during the festive season this year. Swiggy filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential route in early May, targeting a $1.2 billion IPO.
Zepto, another player in the space, is in talks to raise $300 million in funding, further intensifying the race.
Horizontal e-commerce giants are also eyeing the quick commerce market. Flipkart is expected to enter the fray, while BigBasket has revived its quick delivery vertical, BB Now. BigBasket plans to expand its app offerings beyond essentials and groceries to capture a larger market share.
Zomato had initially acquired Blinkit, previously known as Grofers, in a 2022 deal valued at ₹ 4,447 crore. The acquisition was a strategic move to rescue the struggling platform. Under the leadership of Albinder Dhindsa, Blinkit has since transformed into a significant driver of shareholder value for Zomato, now overshadowing its food delivery business in growth potential.
The new funding will fuel Blinkit's aggressive expansion plans. The company aims to nearly double its store count by adding 474 new dock stores over the next 12 months. This expansion is part of Blinkit's strategy to cement its position in the quick commerce market and outpace its competitors.
The quick commerce segment is becoming increasingly crowded and competitive. Swiggy, a major rival, is gearing up for its Initial Public Offering (IPO) on Dalal Street, anticipated to take place during the festive season this year. Swiggy filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential route in early May, targeting a $1.2 billion IPO.
Zepto, another player in the space, is in talks to raise $300 million in funding, further intensifying the race.
Horizontal e-commerce giants are also eyeing the quick commerce market. Flipkart is expected to enter the fray, while BigBasket has revived its quick delivery vertical, BB Now. BigBasket plans to expand its app offerings beyond essentials and groceries to capture a larger market share.
(Edited by : Jomy Jos Pullokaran)
First Published: Jun 12, 2024 12:06 AM IST
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