Zomato Infuses INR 500 Cr Into Blinkit

SUMMARY

As per Blinkit’s regulatory filings, it allotted 2,537 equity shares at an issue price of INR 19.7 Lakh (19,70,181) each to raise INR 500 Cr from Zomato

“… pursuant to the resolution passed by the board of directors in its meeting held on January 6, the company has allotted 2,537 equity shares on the right issue basis,” the filing said

Prior to this, Zomato injected INR 300 Cr in Blinkit in June last year. Zomato then informed that its cumulative invested amount in Blinkit stood at INR 2,300 Cr

Listed foodtech major Zomato has infused around INR 500 Cr (about $57.7 Mn) in its quick commerce arm Blinkit. 

As per Blinkit’s regulatory filings, it allotted 2,537 equity shares at an issue price of INR 19.7 Lakh (19,70,181) each to raise INR 499.83 Cr from Zomato. 

“… pursuant to the resolution passed by the board of directors in its meeting held on January 6, the company has allotted 2,537 equity shares on the right issue basis,” the filing said. 

The development comes nearly two months after Zomato raised INR 8,500 Cr (around $1 Bn) through its first qualified institutional placement (QIP) to expand its quick commerce business Blinkit and support other key growth initiatives.

In its QIP document, the company said it will utilise about INR 2,137 Cr from the issue towards setting up and running operations of Blinkit’s dark stores and Hyperpure’s warehouses.

Prior to this, Zomato injected INR 300 Cr in Blinkit in June last year. Zomato then informed that its cumulative investment in Blinkit stood at INR 2,300 Cr, since the latter’s acquisition in August 2022. 

The development comes at a time when the competition in the quick commerce segment is rising rapidly. With the fund infusion, Zomato would look to further expand and strengthen its quick commerce offering.

Earlier this month, Blinkit officially announced the launch of its 10-minute food delivery app Bistro.

Zomato’s food delivery business reported a gross order value (GOV) of INR 9,690 Cr in Q2 FY25, while Blinkit’s GOV stood at INR 6,132 Cr for the same period. 

Its counterpart Swiggy reported a GOV of INR 7,191 Cr, while its quick commerce arm Instmart reported a GOV of INR 3,382 Cr in Q2 FY25.

A report by brokerage firm JM Financial today said that Blinkit’s supply chain investments are expected to help the company better compete with its peers. The brokerage noted that Zomato is the only major hyperlocal delivery company in India that is currently generating free cash flows on a consolidated basis.

JM Financial expects Zomato’s quick commerce arm Blinkit to register a sequential GOV growth of 22.2% in Q3 FY25 on the back of a surge in order volumes driven by an increase in monthly transacting users.

Zomato reported a 389% year-on-year increase in its consolidated net profit to INR 176 Cr in Q2 FY25. However, net profit dropped 30% sequentially due to increase in expenses on account of Blinkit’s expansion spree.

Shares of Zomato ended today’s trading session 2.7% higher at INR 248.75 apiece on the BSE.

You have reached your limit of free stories
Become A Startup Insider With Inc42 Plus

Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in india's startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Zomato Infuses INR 500 Cr Into Blinkit-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Zomato Infuses INR 500 Cr Into Blinkit-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Zomato Infuses INR 500 Cr Into Blinkit-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Zomato Infuses INR 500 Cr Into Blinkit-Inc42 Media
Zomato Infuses INR 500 Cr Into Blinkit-Inc42 Media
You’re in Good company