Zomato to inject Rs 300 crore into Blinkit as competition heats up with Swiggy, Zepto. Gurgaon-based Zomato will invest Rs 300 crore in its quick commerce unit Blinkit, according to a filing with the Registrar of Companies. Zomato has already invested Rs 2,300 crore in Blinkit since acquiring it in August 2022 in an all-stock deal worth Rs 4,477 crore.
Besides Blinkit, Zomato will also invest Rs 100 crore in its subsidiary Zomato Entertainment Pvt Ltd, which handles live events and ticketing. The investment comes at a time when Blinkit is facing stiff competition from Swiggy Instamart and Zepto. Swiggy has filed draft papers for a Rs 10,414 crore IPO, while Zepto is in talks to raise $300 million (around Rs 2,500 crore). The quick delivery sector may also see entrants like Flipkart, which recently held talks with Zepto for a potential deal.
In fiscal 2024, Blinkit reported revenues of Rs 2,302 crore, up from Rs 1,064 crore in FY23. Its adjusted Ebitda loss was reduced to Rs 37 crore in the January-March 2024 quarter from Rs 203 crore a year ago. Blinkit plans to increase its dark store count to 1,000 from 562 as of March 31. Blinkit is also expanding its product range to include apparel, home decor, electronics, sports goods, and home appliances.
Blinkit has become a significant driver of shareholder value for Zomato, surpassing its food delivery business in market value. An April report by Goldman Sachs estimated Blinkit's value at Rs 119 per share, compared to Rs 98 per share for Zomato's food delivery business. This means Blinkit contributes $13 billion to Zomato's value, up from $2 billion in March 2023.
As of Tuesday morning, Zomato's market capitalisation was over $19 billion (Rs 1.6 lakh crore), with its stock trading 0.4 per cent higher at Rs 182.50 on the BSE. Before fully acquiring Blinkit in 2022, Zomato held a 9 per cent stake. Blinkit became a unicorn in June 2021 after raising $120 million from Zomato and Tiger Global. In March 2022, Blinkit raised $100 million from Zomato through convertible notes, and Zomato extended a $150 million loan to Blinkit in the same month.