Zomato will compete with Swiggy Instamart, will invest ₹300 crore in Blinkit, know the whole thing
Zomato has big preparations. To give tough competition to Swiggy Instamart, Zomato will invest Rs 300 crore in its quick commerce subsidiary Blinkit. After this investment, Zomato’s total investment in Blinkit will be Rs 2,300 crore. According to the news of Financial Express, this has been stated in the regulatory filing obtained from Tofler. Zomato had acquired Blinkit for $569 million in an all-stock deal in 2022. The company will invest Rs 100 crore in Zomato Entertainment, its live events and ticketing business.
There will be 1000 stores by the end of financial year 2025
According to the news, after announcing the results of the fourth quarter of fiscal year 2024, the company said that Blinkit plans to increase its store footprint to 1000 by the end of fiscal year 2025. The increased investment underlines the growing importance of Blinkit to Zomato’s business strategy. In 2021, Zomato acquired 9% stake in Blinkit (then called Grofers) for $100 million. Completed acquisition of the company the next year. Zomato CEO Deepinder Goyal focused on the possibilities of quick commerce and called it a priority of the company.
Gross order value also increased by 13.7%
Blinkit’s gross order value (GOV) doubled to Rs 4,027 crore in Q4FY24 from Rs 2,046 crore in the same quarter last year. This represents a sequential growth of 13.7%. GOV for Zomato’s food delivery segment grew 28% to Rs 8,439 crore, but saw a marginal sequential decline of 0.6%. At present, Blinkit is leading in the quick commerce market, followed by Swiggy Instamart and Zepto.
The acquisition by Zomato came in a distress sale for Rs 4,447 crore, almost half of Blinkit’s earlier valuation. This new capital infusion coincides with Zepto’s ongoing fundraising efforts and Flipkart’s entry into the quick commerce space. Swiggy is also focusing on its quick commerce arm, Swiggy Instamart.
