Zomato, the leading food delivery platform, has further solidified its commitment to the quick-commerce sector with a fresh Rs 500 crore investment in its subsidiary, Blinkit. This infusion brings the total investment in Blinkit to a substantial Rs 2,800 crore since its acquisition in August 2022.
This move follows Zomato’s successful Rs 8,500 crore capital raise through a Qualified Institutional Placement (QIP) in November 2024. The company aims to utilize these funds to strengthen its financial position and fuel strategic growth initiatives, with Blinkit being a key focus area.
Blinkit’s Rapid Growth and Expansion
Since its acquisition, Blinkit has demonstrated impressive growth. In the July-September quarter, the company witnessed a remarkable 129% jump in revenue, reaching Rs 1,156 crore. Notably, its EBITDA losses narrowed significantly to Rs 8 crore, a substantial improvement from the Rs 125 crore loss in the same period last year.
The Indian quick-commerce market is witnessing increased competition, with the entry of major players like Amazon. To further solidify its market position, Blinkit is aggressively expanding its operations to maintain its market leadership. The company aims to operate 1,000 dark stores by March 2025 and ambitiously plans to increase this number to 2,000 by December 2026. This expansion will enhance delivery speed and coverage across key markets.
Beyond Groceries: Diversification and Innovation
Blinkit is not limiting itself to grocery deliveries. The company has recently launched “Bistro,” a 10-minute food delivery service, entering the competitive landscape dominated by players like Swiggy and Zepto. This move signifies Blinkit’s ambition to become a one-stop shop for a wide range of consumer needs.
Furthermore, Blinkit has introduced a unique service – a 10-minute ambulance service in select areas of Gurugram. These ambulances are equipped with essential medical equipment such as oxygen cylinders, AEDs (Automated External Defibrillators), and emergency medications, aiming to provide rapid medical assistance in critical situations.
Zomato’s Overall Performance
Zomato itself is experiencing robust growth. The company recorded a significant 68.5% quarter-on-quarter increase in operating revenue, reaching Rs 4,799 crore, while net profit surged nearly fivefold to Rs 176 crore in the same period. These strong financial results underscore Zomato’s position as a leading player in the Indian food delivery market.
Zomato’s substantial investment in Blinkit reflects its strong belief in the potential of the quick commerce sector in India. With its aggressive expansion plans, innovative service offerings, and focus on operational efficiency, Blinkit is well-positioned to capitalize on the growing demand for on-demand delivery services. However, the company will need to navigate the challenges of intense competition and ensure sustainable profitability in the long term.
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