Zomato Invests Additional ₹1,500 Crore in Blinkit to Fuel Expansion

Zomato’s share price is set to remain in focus on Tuesday, February 25, 2025, following its latest investment of ₹1,500 crore in Blinkit, as per regulatory filings with the Registrar of Companies (RoC). This comes just a month after the company infused another ₹500 crore into its quick commerce arm.

Aggressive Expansion Plans for Blinkit 

Blinkit is aggressively expanding its presence, aiming to maintain market leadership by rapidly opening dark stores. The company has announced plans to open 2,000 dark stores by the end of 2026. Additionally, Blinkit has widened its stock-keeping unit (SKU) range to include high-value items such as TVs, laptops, and printers, to improve its average order value.

With the latest investment, Zomato has poured a total of ₹4,300 crore into Blinkit since acquiring the online grocery delivery firm in August 2022. The continued investment highlights the company’s commitment to strengthening its position in the quick commerce sector.

Zomato’s Fundraising and Financial Strategy 

In November 2024, Zomato raised ₹8,500 crore through a qualified institutional placement (QIP). The funds were primarily aimed at improving the company’s balance sheet and ensuring sufficient cash reserves for its quick commerce division.

The fresh infusion is expected to support Blinkit’s rapid expansion amid increasing competition in the sector. The quick commerce space is seeing rising competition, with rival Zepto reportedly burning ₹350-400 crore per month to gain market share.

Financial Performance 

In Q2FY25, Blinkit was close to achieving operational breakeven. However, in Q3FY25, the company’s operational losses rose to ₹103 crore due to the aggressive opening of new dark stores. Despite this, Blinkit has reiterated its commitment to expansion and intends to continue scaling until it reaches its target of 2,000 dark stores.

The rapid expansion strategy will require more liquidity in the company’s balance sheet, and further investments may be needed to sustain growth and maintain competitiveness in the quick commerce market.

Stock Performance 

On February 24, 2025, Zomato share price ended 3.32% lower at ₹222.60. Zomato’s share price reached a 52-week high of ₹304.50, and a 52-week low of ₹144.30. As per BSE, the total traded volume for the stock stood at 12 lakh shares with a turnover of ₹26.98 crore.

At the current price, Zomato shares are trading at a price-to-earnings (P/E) ratio of 120.32x, based on its trailing 12-month earnings per share (EPS) of ₹1.85, and a price-to-book (P/B) ratio of 8.90, according to exchange data.

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