Zomato Parent Eternal Increases Investment in Quick Commerce with Rs 600 Crore for Blinkit

Quick commerce is the focus keyword. Zomato’s parent company, Eternal, has invested an additional Rs 600 crore into its quick commerce platform, Blinkit. This new capital demonstrates Eternal’s commitment to growing its non-food sector, which is increasingly driving the company’s overall growth.

According to its regulatory filing from the Registrar of Companies (RoC), the board at Blinkit has issued 3,733 equity shares at an issue price of Rs 16,07,161 each, raising Rs 600 crore from Eternal Limited (previously known as Zomato Limited). This fresh round of investment follows earlier funding over the past two years.

Previous Investments and Overall Financial Position

Eternal had previously allocated Rs 400 crore towards Blinkit and its entertainment division in June 2024. Earlier in January, the company injected Rs 500 crore into Blinkit, followed by another Rs 1500 crore in February. With the latest infusion of Rs 600 crore, Eternal’s total investment in Blinkit for 2025 now exceeds Rs 2,600 crore.

As a result of this strategy, Eternal’s financial records indicate a noteworthy shift towards quick commerce. The company reported operating revenue of Rs 13,590 crore in the second quarter of FY26, nearly tripling the figure from the same period last year. Blinkit was responsible for Rs 9,891 crore of this, contributing around 73% of the total operating revenue. In contrast, Eternal’s food delivery segment generated revenue of roughly Rs 2,485 crore.

Impact of Inventory-Led Structure

The growth in Blinkit’s revenue is attributed to the company’s transition to an inventory-led model, wherein Eternal accounts for the full value of goods sold. Although this approach has substantially increased revenue, profitability faces challenges. In the second quarter, Eternal disclosed a consolidated net profit of Rs 65 crore, representing a 63% drop compared to last year. Factors such as the costs associated with expanding dark stores, stocking inventory, and enhancing delivery infrastructure are impacting earnings.

Increasing Competition in Quick Commerce

Competition within the quick commerce space is intensifying. Rivals like Swiggy Instamart, Zepto, and BigBasket’s BB Now are enhancing their networks and investing heavily to improve delivery speed and category offerings. Major offline retail chains are also entering the instant delivery sector, driving up expenditure across these competitors, which is likely to exert pressure on margins and necessitate ongoing capital support.

For context, Swiggy has recently received approval to raise as much as Rs 10,000 crore ($1.13 billion) through a public or private offering. Meanwhile, BigBasket’s consumer division secured Rs 200 crore ($22.7 million) in debt from DBS Bank Ltd. Additionally, Zepto successfully closed a funding round of $450 million, led by the California Public Employees’ Retirement System (CalPERS).