Blinkit, the quick commerce subsidiary of Zomato, is set to receive an infusion of ₹300 crore in fresh capital from its parent company, regulatory filings sourced via Tofler have revealed, according to a report.
The latest investment brings Zomato's total investment in Blinkit to ₹2,300 crore since its acquisition in August 2022, Moneycontrol reported. The continuous flow of funds underscores the significance of the quick commerce sector in India and Zomato’s commitment to maintaining its competitive edge, the report added.
Zomato share price was trading in the green, up 1.76 per cent at ₹185.05 on June 11, at 1:57 pm, on BSE.
Blinkit's journey to become the leading player in quick commerce is noteworthy, especially given its past struggles before being acquired by Zomato. Competitors in the sector include Swiggy Instamart, Zepto, and Tata BigBasket.
Livemint could not independently verify the development.
Zomato, based in Gurugram, acquired Blinkit (formerly Grofers) in a distress sale for ₹4,447 crore, which was nearly half of its previous valuation. Initially viewed as a burden, Blinkit has since transformed into Zomato’s largest division, reflecting a significant turnaround.
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Zomato announced its acquisition of Blinkit in 2022. The move was perceived as a rescue operation, leading to a 20 per cent drop in Zomato’s share price. Despite initial scepticism, Zomato remained optimistic, and Blinkit has delivered on its promises, successfully raising capital, as per the Moneycontrol report.
The latest capital infusion comes at a time when Zepto is in the midst of a fresh fundraising round and Flipkart is establishing its quick commerce business. Additionally, Swiggy, Zomato’s main rival, is preparing for a public offering and is bolstering Swiggy Instamart to compete with Blinkit.
Blinkit has emerged as the largest quick commerce player in India, surpassing Swiggy Instamart and Zepto, according to analysts.
Quick commerce involves delivering groceries and other items to customers within 10 minutes. While it began with essentials like milk, fruits, and vegetables, companies have expanded into multiple categories such as fashion and home decor to increase cart value and profitability.
