Zomato Starts Pilot Testing Of Blinkit Grocery Delivery On Its Main App

Zomato has started grocery delivery via Blinkit on its main app in Delhi-NCR. The launch of this pilot test comes a few months after Zomato acquired the quick commerce startup Blinkit.

With this move, the foodtech giant aims to accelerate the quick commerce app Blinkit’s road to profitability, as per an IANS report.

Zomato is conducting the tests currently in select circles of Delhi-NCR and will expand the service to other cities based on the response it receives.

While for the Blinkit app, the minimum order value for free delivery is INR 150, it is at INR 49 when it comes to the grocery delivery on Zomato app.

Earlier this month, Zomato completed the much-discussed acquisition of quick-commerce startup Blinkit.

“Further, the company has completed acquisition of 100% shareholding of BCPL from its shareholders. Accordingly, BCPL became a wholly owned subsidiary of the company with immediate effect i.e. from August 10, 2022,” Zomato said.

It is to be noted that BCPL is the parent entity of Blinkit.

Zomato has been very active in investing in smaller startups and acquisitions. It has invested more than $1.2 Bn for investments and acquisitions so far.

However, Zomato’s Blinkit deal remains the most significant acquisition to date. Back in June, the Zomato board approved the acquisition of Blinkit (previously Grofers) for $568 Mn.

Zomato’s founder and CEO Deepinder Goyal said earlier that the Blinkit offerings would be synergistic with its core food delivery business.

However, the deal was widely crticised after it was announced as it raised questions about its profitability. Zomato’s net loss widened to INR 1,222.5 Cr in FY22 from INR 816.4 Cr in FY21.

Earlier, Zomato was expected to be profitable by FY2025. However, the Blinkit deal is likely to push the company’s profitability by at least a year, i.e from FY25 to FY26, according to analysts at JM Financial.