Zomato Infuses ₹300 Crore into Blinkit, Investment of ₹2,300 Crore

Zomato, the food delivery giant, has injected an additional ₹300 crore into its quick commerce subsidiary, Blinkit.

This latest infusion brings Zomato’s total investment in Blinkit to ₹2,300 crore, according to regulatory filings sourced via Tofler and reported by Moneycontrol.

Zomato acquired Blinkit in August 2022 and has since focused on expanding its quick commerce division in India.

Market Position and Competition of Blinkit:

Blinkit currently leads the quick commerce sector in India, ahead of competitors like Swiggy Instamart and Zepto. The acquisition of the app was a distressed sale valued at ₹4,447 crores, nearly half its previous valuation.

This capital infusion occurs as Zepto is raising new funds, Flipkart is establishing its quick commerce business, and Swiggy is intensifying its efforts with Swiggy Instamart.

Financial Performance by Blinkit:

The app has shown significant financial improvement, turning adjusted EBITDA positive in March 2024. The company scaled up average order value and volume in the fourth quarter of FY24. Key financial highlights include:

• Revenue: ₹769 crore in Q4 FY24, compared to ₹363 crore in Q4 FY23.
• Adjusted EBITDA Loss: Improved from ₹203 crores in Q4 FY23 to ₹89 crore in Q3 FY24.
• Gross Order Value: Increased by 97% year-on-year to ₹4,027 crores in Q4 FY24.

Operational Expansion:

As of the last quarter, Blinkit has expanded its presence to 26 cities and operates over 526 dark stores. This extensive network supports its leadership position in the quick commerce market.

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