Tag Archives: Zomato

Business News

Zomato Invests ₹1,500 Crore in Blinkit to Fortify Quick Commerce Presence

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In a strategic move to enhance its footprint in the quick commerce sector, food tech giant Zomato has infused an additional ₹1,500 crore (approximately $178 million) into its subsidiary, Blinkit. This investment comes on the heels of a ₹500 crore funding round just a month prior, underscoring Zomato’s commitment to bolstering Blinkit’s operations amidst intensifying market competition.

Details of the Investment of Zomato

According to regulatory filings accessed from the Registrar of Companies (RoC), Blinkit’s board approved a special resolution to issue 7,612 equity shares at an issue price of ₹19,70,181 each, facilitating the ₹1,500 crore capital raise.

This substantial capital injection follows Zomato’s ₹8,500 crore fundraising through a Qualified Institutions Placement (QIP) three months earlier, aimed at strengthening its financial position and supporting strategic initiatives, particularly in the quick commerce segment.

Financial Performance and Market Dynamics

In the third quarter of the current fiscal year, Zomato reported a remarkable 64.4% year-on-year growth in operating revenue, reaching ₹5,405 crore, up from ₹3,288 crore in Q3 FY24. However, the company’s profits declined by 57.2% to ₹59 crore during the same period.

Blinkit, on the other hand, demonstrated impressive growth, with its operational revenue surging over 117% year-on-year to ₹1,399 crore in Q3 FY25, up from ₹644 crore in the corresponding quarter of the previous fiscal year.

This investment also comes in the wake of rival Swiggy’s recent infusion of ₹1,000 crore ($117 million) into its supply chain unit, Scootsy Logistics, to bolster its quick commerce arm, Instamart. According to a Citi report, Blinkit currently leads the quick commerce market with a 41% share, while Swiggy trails at 23%.

Conclusion

Zomato’s continued financial commitment to Blinkit highlights its strategic focus on dominating the quick commerce landscape in India. As competition intensifies, such investments are poised to enhance operational capabilities, expand market reach, and solidify Blinkit’s position as a market leader in rapid delivery services.

Business News, Technology

Zomato’s new AI tool ‘Nugget’ promises faster, smarter food deliveries… Learn more:

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Zomato, led by CEO Deepinder Goyal, has made headlines with the launch of its first AI-powered product, Nugget. This strategic move aims to enhance user experience and streamline food delivery services. With the rise of AI in the tech industry, Zomato’s latest innovation promises to set new standards in quick commerce and food delivery.

What is Zomato’s AI Product ‘Nugget‘?

Revolutionizing User Experience

Nugget is designed to provide users with personalized recommendations, faster search results, and an overall smoother ordering experience. By leveraging artificial intelligence, Zomato aims to predict customer preferences and offer curated food options tailored to individual tastes.

How Nugget Benefits Users

  • Personalized Food Suggestions: Based on past orders and user preferences.
  • Quick Navigation: Faster access to favorite restaurants and dishes.
  • Real-Time Updates: Enhanced tracking and delivery time predictions.

Zomato’s Expansion Strategy

The introduction of Nugget aligns with Zomato’s broader strategy to diversify its offerings. Alongside its core food delivery business, Zomato is focusing on quick commerce through Blinkit and efficient kitchen supplies with Hyperpure. This multi-faceted approach strengthens its market position and addresses varying consumer needs.

Industry Impact and Competition

Swiggy, Zomato’s key competitor, is also investing heavily in technology to enhance its services. With the launch of Nugget, Zomato not only elevates its user interface but also intensifies the competition in the quick commerce and food delivery sectors.

Conclusion

Zomato’s unveiling of Nugget marks a significant milestone in the company’s journey toward technological innovation. As AI continues to transform industries, Zomato’s proactive approach ensures it stays ahead in the food delivery race. Will Swiggy respond with a similar innovation? Stay tuned!

Finance, Technology

Swiggy’s ₹1,000 Crore Boost to Scootsy Logistics: A Game-Changer for Quick Commerce

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In a strategic move to strengthen its quick-commerce capabilities, Swiggy, a leading food and grocery delivery platform in India, has announced an investment of up to ₹1,000 crore in its wholly-owned subsidiary, Scootsy Logistics. This substantial infusion aims to enhance supply chain efficiency and support the rapid expansion of Swiggy’s quick-commerce arm, Instamart.

Swiggy’s Investment in Scootsy Logistics

Swiggy’s decision to invest ₹1,000 crore in Scootsy Logistics underscores its commitment to bolstering its supply chain infrastructure. This investment is designated for working capital and other capital expenditures, facilitating Scootsy’s business expansion. The funds will be allocated in one or more tranches, ensuring a phased and strategic deployment.

Enhancing Instamart’s Quick-Commerce Expansion

Instamart, Swiggy’s quick-commerce platform, has been experiencing rapid growth, catering to the increasing demand for instant delivery of groceries and household items. The investment in Scootsy is poised to support Instamart’s expansion by improving warehouse management, order processing, and overall logistics. This move aligns with Swiggy’s strategy to capture a larger share of the quick-commerce market, which is outpacing traditional food delivery services in growth.

Competitive Landscape and Market Dynamics

The quick-commerce sector in India is witnessing intensified competition, with key players like Swiggy and its rival, Zomato (recently rebranded as Eternal), making significant investments to enhance their delivery capabilities. Both companies aim to provide ultra-fast deliveries, often within 10 minutes, to meet evolving consumer expectations. However, these aggressive expansions require substantial capital, impacting profit margins. Swiggy’s latest investment reflects its strategic focus on scaling operations to meet market demands while navigating the challenges of profitability in the quick-commerce domain.

Conclusion

Swiggy’s ₹1,000 crore investment in Scootsy Logistics marks a pivotal step in reinforcing its supply chain and quick-commerce operations. By channeling funds into infrastructure and logistics, Swiggy aims to enhance Instamart’s service efficiency, positioning itself competitively in the fast-evolving quick-commerce landscape. As consumer preferences shift towards rapid delivery services, such strategic investments are crucial for sustaining growth and market relevance.