Zomato invests ₹500cr in its quick commerce division Blinkit
What's the story
Food delivery giant Zomato has pumped in another ₹500 crore into its quick commerce arm, Blinkit. The investment was revealed in documents submitted to the Registrar of Companies (RoC), according to Tofler. The funding round saw the issuance of 2,537 equity shares at ₹19.70 lakh each, amounting to nearly ₹500 crore. With the latest infusion, Zomato's total investment in Blinkit reaches around ₹2,800 crore.
Investment strategy
Zomato's strategic investment follows recent fundraising
Notably, the latest investment in Blinkit comes after Zomato raised ₹8,500 crore in a successful Qualified Institutional Placement (QIP) in late November. Of this, a large chunk of ₹2,137 crore was allocated for the expansion of Blinkit's operations. The expansion plan involves investments in dark stores and warehouses to bolster its quick commerce capabilities.
Market lead
Blinkit's market dominance and expansion plans
Currently, Blinkit leads the quick commerce market with a 46% share, ahead of Zepto and Swiggy Instamart. The company has ambitious expansion plans, including the appointment of ex-Flipkart executive Vipin Kapooria as CFO and plans to open 2,000 dark stores by the end of 2026. This strategy is similar to aggressive expansion efforts by its rivals in the fast-growing quick commerce space.
Diversification
Quick commerce firms diversify beyond grocery deliveries
Not just grocery deliveries, quick commerce companies are also getting into the game of rapid food delivery. Blinkit launched a standalone app, Bistro, for 10-minute food deliveries earlier this month. The move comes as a step to compete directly with Zepto Cafe, Swiggy's Bolt and other such services in the market.