Zomato has invested an additional ₹500 crore in its quick commerce arm Blinkit, according to regulatory filings with the Registrar of Companies (RoC).
With this latest infusion, Zomato’s total investment in Blinkit stands at ₹2,800 crore since acquiring the company for ₹4,477 crore in August 2022. The previous infusion of ₹300 crore was made in June 2023.
The investment comes just two months after Zomato raised ₹8,500 crore through a qualified institutional placement (QIP). The company stated that part of the funds would be used to strengthen its balance sheet and support Blinkit’s growth amid rising competition.
Of the total QIP proceeds, ₹2,137 crore has been earmarked for Blinkit’s expansion, focusing on increasing the number of dark stores and warehouses.
Currently, Blinkit holds a 45% market share in the quick commerce segment, along with the highest gross order value (GOV), exceeding $3 billion. However, the company is accelerating its expansion plans to counter competition from established players like Zepto and Swiggy Instamart, as well as new entrants like Flipkart Minutes.
To maintain its lead, Blinkit has announced SKU (stock-keeping unit) expansion and is expanding into tier-II cities. It has also begun offering high-value products, such as laptops on EMIs, to diversify its portfolio.
It has also recently entered the quick food delivery segment via a new standalone app, Bistro, and launched a 10-minute ambulance service.
The company also aims to open 2,000 dark stores by the end of 2026. The company has appointed Vipin Kapooria, a former Flipkart executive, as its chief financial officer.
Zomato sees Blinkit as a core growth driver and potentially a larger business than its core food delivery operations. In April 2023, Blinkit’s implied valuation even surpassed Zomato’s.