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

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.