Zomato Invests in Blinkit for Quick Commerce Expansion

Food tech leader Zomato has put in a significant investment of Rs 1,500 crore (approximately $178 million) into its quick commerce subsidiary, Blinkit. This investment comes just a month following the completion of a Rs 500 crore funding round.

The Blinkit board approved a special resolution allowing the issuance of 7,612 equity shares at an issue price of Rs 19,70,181 each, aimed at raising the mentioned Rs 1,500 crore (or $178 million), as detailed in a regulatory filing obtained from the Registrar of Companies (RoC).

This fresh influx of capital into Blinkit follows closely on the heels of Zomato’s successful raising of Rs 8,500 crore through a Qualified Institutions Placement (QIP) three months earlier. The primary aim of this capital acquisition was to bolster Zomato’s financial footing and support its business expansion along with strategic initiatives, especially in the quick commerce sector.

In the third quarter of the current financial year, Zomato recorded an impressive 64.4% year-on-year increase in operating revenue, climbing to Rs 5,405 crore from Rs 3,288 crore in Q3 FY24. However, during this same timeframe, profits for the company based in Gurugram saw a decline of 57.2%, dropping to Rs 59 crore.

In Q3 FY25, Blinkit reported a stunning 117% growth in revenue from operations, reaching Rs 1,399 crore compared to Rs 644 crore previously.

Recently, Zomato’s main competitor, Swiggy, injected Rs 1,000 crore ($117 million) into its supply chain division, Scootsy Logistics, to enhance its quick commerce venture, Instamart.

A recent report from Citi noted that Swiggy Instamart is currently lagging behind in the quick commerce competition. Zomato’s Blinkit and Zepto are gaining greater market shares in India’s fast-paced delivery domain, with Swiggy holding 23% of the market and Blinkit commanding 41%.