Zomato Infuses Rs 300 Crore into Quick Commerce Business Blinkit Amid Intensifying Competition

Gurgaon-based food delivery giant Zomato has injected fresh capital of Rs 300 crore into its quick commerce business Blinkit, according to a recent regulatory filing with the Registrar of Companies (RoC). This latest infusion brings Zomato's total investment in Blinkit to Rs 2,300 crore since its acquisition of the company in August 2022. Zomato acquired Blinkit, formerly known as Grofers, in an all-stock deal valued at Rs 4,477 crore.

In addition to its investment in Blinkit, Zomato will also invest Rs 100 crore in its subsidiary, Zomato Entertainment Pvt Ltd, which oversees the company's live events and ticketing businesses.

This fresh capital injection comes at a time when the quick commerce space is witnessing heightened competition. Blinkit is competing with major players like Swiggy Instamart and Nexus Venture Partners-backed Zepto. Swiggy, which also rivals Zomato in the food delivery and dining out segments, has recently filed draft papers with the market regulator for a Rs 10,414 crore initial public offering (IPO). Meanwhile, Zepto is in discussions to raise $300 million (approximately Rs 2,500 crore).

The quick delivery segment is also expected to see new entrants, including horizontal e-commerce players such as Flipkart. On April 19, reports indicated that Flipkart had discussions with Zepto for a potential deal, but the talks did not materialize.

In fiscal 2024, Blinkit reported revenues of Rs 2,302 crore, more than doubling from Rs 1,064 crore in FY23. The company's adjusted EBITDA loss significantly decreased to Rs 37 crore in the January-March 2024 quarter, down from Rs 203 crore in the same period the previous year.

Zomato's continued investment in Blinkit highlights its commitment to strengthening its position in the quick commerce sector, amid a rapidly evolving and competitive landscape.