Zomato invests ₹300 crore in Blinkit amid quick commerce battle
Zomato, a leading food delivery platform, has announced a fresh investment of ₹300 crore in its subsidiary, Blinkit. This move comes as the quick commerce sector in India becomes increasingly competitive. The investment, revealed in regulatory filings sourced from Tofler, brings Zomato's total investment in Blinkit to ₹2,300 crore since its acquisition in August 2022. The continuous flow of funds underscores the significance of the quick commerce sector in India and Zomato's commitment to maintaining its competitive edge.
Blinkit's transformation and expansion plans
Blinkit, formerly known as Grofers, was acquired by Zomato in a ₹4,447 crore deal in 2022. Under the leadership of Albinder Dhindsa, Blinkit has evolved into a significant contributor to Zomato's shareholder value. The company plans to nearly double its store count by adding 474 new dock stores over the next year. This expansion is part of Blinkit's strategy to solidify its position in the quick commerce market and outpace its competitors.
Quick commerce sector witnesses increased competition
The quick commerce sector is witnessing a surge in competition with Swiggy, a major rival of Zomato, preparing for its market debut. Zepto, another player in the space, is reportedly in talks to raise $300 million in funding. E-commerce giants like Flipkart are also eyeing the quick commerce market, while Tata-backed BigBasket has revived its quick delivery vertical, BB Now, with plans to expand its app offerings beyond essentials and groceries. Reliance's JioMart is also launching sub-30-minute delivery service.
