Blinkit, the rapid delivery subsidiary of Zomato, is slated to receive a fresh injection of ₹300 crore in capital from its parent company, according to regulatory filings accessed through Tofler, as reported by Moneycontrol. This latest capital infusion highlights Zomato’s continued investment in Blinkit, totaling ₹2,300 crore since its acquisition in August 2022. The ongoing financial support underscores the significance of the quick commerce sector in India and Zomato’s dedication to maintaining its competitive position.
The funding comes amid Zomato’s shares trading positively on the stock market, reflecting investor confidence. Blinkit’s evolution into a key player in the quick commerce space is noteworthy, especially considering its past challenges before being acquired by Zomato. Competitors in this sector include Swiggy Instamart, Zepto, and Tata BigBasket.
Zomato’s acquisition of Blinkit, formerly known as Grofers, was initially perceived as a distress sale due to its reduced valuation. However, Blinkit has since become Zomato’s largest division, marking a significant turnaround. Despite initial concerns, Blinkit has successfully raised capital and fulfilled its objectives, as reported by Moneycontrol.
This capital infusion coincides with Zepto’s ongoing fundraising efforts and Flipkart’s entry into the quick commerce segment. Additionally, Swiggy, Zomato’s primary rival, is gearing up for a public offering and bolstering its Swiggy Instamart service to compete with Blinkit.
Analysts note that Blinkit has emerged as the leading quick commerce player in India, surpassing competitors like Swiggy Instamart and Zepto. Quick commerce, which focuses on delivering groceries and other items to customers within a short timeframe, has expanded beyond essentials to include various categories like fashion and home decor, aimed at enhancing cart value and profitability.
