Eternal announces 'Blinkit Foods' to take on Zepto Cafe
What's the story
Eternal, the parent firm of Zomato and Blinkit, has announced the incorporation of a new wholly-owned subsidiary called Blinkit Foods. The move comes as part of its expansion plans in the food services sector, and might take on Zepto Cafe. The company said that Blinkit Foods will be involved in various aspects of food services like innovation, preparation, sourcing, sale, and delivery to customers.
Market entry
Blinkit Foods might serve Bistro
The newly incorporated subsidiary, Blinkit Foods, will have an authorized share capital of ₹1 crore. While the specific segment it will cater to has not been disclosed, industry insiders speculate that it could be serving Blinkit's 10-minute food delivery service Bistro. This speculation comes as Eternal is expanding Bistro's operations across Bengaluru and Delhi-NCR with 38 kitchens already in place.
Financial performance
Eternal shares Q1 results
Along with the announcement of Blinkit Foods, Eternal also shared its Q1 results. The firm's consolidated net profit for the quarter plunged 90% to ₹25 crore from ₹253 crore in the same period last year. However, its revenue from operations saw a massive over 70% jump to ₹7,167 crore from ₹4,206 crore in the corresponding period last year.
Business insights
What did Deepinder Goyal say?
Eternal's founder and CEO Deepinder Goyal shared his thoughts on Bistro's performance in a letter to shareholders. He said that the kitchens are creating incremental demand without cannibalizing Zomato's business. "Through Bistro, we are tapping into two demand pockets so far unaddressed by Zomato-customers looking for high quality but low cost meals and customers looking for snacky food in 10 minutes," he wrote.