Zomato infuses ₹300 crore to its quick commerce arm Blinkit
Zomato has recently announced a fresh injection of ₹300 crore into Blinkit, its quick commerce arm, as part of its strategic efforts to solidify its foothold in the rapidly growing quick commerce sector.
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Zomato has recently announced a fresh injection of ₹300 crore into Blinkit, its quick commerce arm, as part of its strategic efforts to solidify its foothold in the rapidly growing quick commerce sector. This new capital infusion, as reported by Moneycontrol citing regulatory filings, brings Zomato's total investment in Blinkit to an impressive ₹2,300 crore since its acquisition of the company back in August 2022.
This move by Zomato underscores its unwavering commitment to staying ahead in India's dynamic quick commerce market. By continually investing in Blinkit, Zomato recognizes the potential of the quick commerce model and its significance in driving the company's growth trajectory.
Initially acquired at a distressed sale price of ₹4,447 crore, which marked a significant drop from its previous valuation, Blinkit has since undergone a remarkable transformation under Zomato's stewardship. Despite initial doubts and a subsequent dip in Zomato's share price post-acquisition, Blinkit has emerged as a key player in the quick commerce landscape, now standing as Zomato's largest division.
Zomato's share price exhibited positive momentum, rising by 1.76% to ₹185.05 on June 11, 2024. This fresh investment comes at a pivotal juncture as Blinkit faces stiff competition from major contenders like Swiggy Instamart, Zepto, and Tata BigBasket. Swiggy, in particular, is gearing up for an IPO and intensifying efforts to strengthen Swiggy Instamart, adding to the competitive landscape along with Flipkart's foray into quick commerce.
Blinkit's evolution in the quick commerce space has been remarkable, transitioning from a struggling entity before Zomato's acquisition to a leading player today. Originally focused on essentials like groceries delivered within 10 minutes, Blinkit has expanded its offerings to include a diverse range of categories such as fashion and home decor, aiming to boost both cart value and profitability.
With this latest capital infusion, Blinkit is poised to further enhance its market position and broaden its service portfolio. Zomato's continued investment signals confidence in the potential of quick commerce and underscores its determination to capture a significant market share.
As Blinkit continues to innovate and expand its reach, Zomato will need to navigate the competitive landscape adeptly, leveraging its resources to sustain growth and drive profitability in the evolving quick commerce sector.