Blinkit to Receive Rs. 300 Cr from Zomato

The quick commerce company, Blinkit, is scheduled to receive fresh capital worth Rs. 300 Cr. This infusion is made by its parent company, Zomato, as the competition in the retail grocery segment intensifies. The latest apportionment marks Zomato’s total investment in Blinkit to a total of Rs. 2300 Crore. This highlights the growth in importance of Blinkit to the food aggregator to stay ahead of its competitors, considering Swiggy’s plans to grow Swiggy Instamart by issuing its IPO and Nexus planning a fundraiser for Zepto.

Blinkit

Based in Gurugram and formerly Grofers, Blink Commerce Private Limited, was formed in December 2013. This quick-commerce service primarily delivers groceries, fresh fruits, vegetables, meat, stationery, bakery items, snacks, flowers, etc. The company has introduced grocery delivery in India by building 500+ dark stores across 25 cities in India to provide instant commerce.

Zomato – the parent company

In 2022, Zomato announced its decision to acquire Blinkit, in a distress sale of Rs. 4447 Crore. Before this acquisition, Zomato held a 10% stake in the company and in March 2022 they also issued a loan of $150 Million to the delivery startup. Since then, Blinkit has now gained a total investment of Rs. 2300 crore from Zomato, showing that it has become a large shareholder value driver for Zomato.

Current operations and Financials

In FY24, Blinkit reported strong financials with revenue worth Rs. 2302 Crores and the adjusted EBITDA loss dropped to Rs. 37Crores. According to a previous report by Angel One,  Zomato saw a 15% QoQ growth in Q3FY24. This growth was majorly fueled by Blinkit, which rose 27% QoQ, as compared to Zomato’s food delivery revenue which only grew by 10% QoQ. As of today, Zomato’s stock is trading 0.96% higher than its previous close at NSE. 

Conclusion:

The infusion of Rs. 300 crore of fresh capital shows Zomato’s confidence in Blinkit’s success to maintain its position as the No. 1 player in the quick-delivery service segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.