11th June 2024- Zomato, a leading player in the foodtech industry, is injecting Rs 300 crore ($36 million) into its quick commerce arm, Blinkit. This strategic move aims to enhance Blinkit’s offerings and fortify its position against competitors like Swiggy Instamart and Zepto.
Additionally, Zomato plans to invest Rs 100 crore ($12 million) in Zomato Entertainment, a subsidiary overseeing the company’s live events and ticketing businesses. The board of Zomato has approved resolutions for these investments, as per regulatory filings.
This investment marks Zomato’s continued support for Blinkit, following its acquisition in August 2022 for Rs 4,477 crore ($568 million). Notably, Blinkit achieved EBITDA profitability and recorded a 19.4% revenue growth to Rs 769 crore in Q4 FY24, contributing to Zomato’s overall profit of Rs 175 crore for the quarter.
In the competitive landscape of quick commerce, Swiggy, Zepto, and Flipkart are also aggressively investing in their respective platforms. Swiggy announced a $700 million investment in Instamart, while Zepto secured approximately $430 million in funding across multiple rounds. Moreover, Flipkart recently raised $350 million from Google, signaling its entry into the quick commerce space.
Analysts at Goldman Sachs view Blinkit as more valuable than Zomato, reflecting the potential growth of the quick commerce segment. Sanjeev Bikhchandani, founder of Zomato’s early backer Info Edge, echoed this sentiment, highlighting Blinkit’s promising future.
Conclusion
Zomato’s substantial investment in Blinkit underscores its commitment to strengthening its quick commerce arm and staying competitive in the rapidly evolving foodtech industry.
Source:Link
