Blinkit to Receive INR 300 Crore Infusion from Zomato Amid Intensifying Competition

India’s quick commerce segment has seen a boom in the last 5 years and the competition has been amplifying over the years with the advent of numerous players. In order to help steer this complex jungle of quick commerce, Blinkit is set to acquire INR 300 crore in fresh capital infusion from parent company Zomato. This shall increase the latter’s total investment in Blinkit to INR 2,300 crore since 2022, when Zomato acquired Blinkit.

Initially starting its journey as Grofers, Blinkit got a new lease of life during the pandemic. However, soon its owners made a distress sale to Zomato in August 2022 for more than INR 4000 crore. At that time, this acquisition cost Zomato a 20% plunge in their share values, however, in the long run, the decision has turned out to be a strategic win for Zomato as Blinkit rules the quick commerce game in India.

This capital infusion occurs at a competitive juncture. Zepto, a close competitor, is in the midst of a fresh fundraising round, and Flipkart is establishing its quick commerce business. On the other hand, second from the top Swiggy is preparing to go public later this year and also intensifying efforts in its quick commerce arm, Swiggy Instamart.

Quick commerce, characterized by delivery times under 10 minutes, initially focused on essentials like milk, fruits, and vegetables. However, it has lately expanded into categories such as fashion and home decor, reflecting its broader market appeal and potential for growth.

According to Goldman Sachs analysts, Blinkit’s implied valuation has soared to USD 13 billion, a sixfold increase year-on-year. The analysts highlight that Blinkit’s per share implied value of INR 119 has surpassed Zomato’s food delivery segment, valued at INR 98 per share, for the first time.

As the quick commerce market heats up, Zomato’s strategic investments in Blinkit are positioning it as a formidable player in the industry, poised to leverage its expanded capabilities and market reach.

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