Blinkit, a leading name in the quick commerce sector, has received a fresh capital infusion of ₹500 crore from its parent company, Zomato. This significant development, disclosed through filings with the Registrar of Companies (RoC) and accessed via Tofler, comes as competition intensifies in the rapid grocery delivery sector.
According to the filings, Blinkit’s board approved the issuance of 2,537 equity shares at ₹19,70,181 each, totalling approximately ₹500 crore. With this, Zomato’s cumulative investment in Blinkit now stands at around ₹2,800 crore.
A strategic financial boost
This investment follows Zomato’s ₹8,500 crore (over $1 billion) fundraising effort through a Qualified Institutional Placement (QIP) in late November. A significant chunk of these funds—₹2,137 crore—has been allocated to expanding Blinkit’s operations, particularly its dark stores and warehouses.
Earlier in June, Zomato infused ₹300 crore into Blinkit, underscoring its belief that the quick commerce division could eventually outpace its core food delivery business. By April 2023, Blinkit’s valuation had even surpassed that of Zomato’s food delivery unit.
Market leader with an expanding presence
Currently, Blinkit leads the quick commerce market with a 46% share, ahead of Zepto and Swiggy Instamart, which hold 29% and 25%, respectively, as per a Motilal Oswal report. This dominance marks a remarkable turnaround from its earlier struggles before Zomato’s acquisition in 2022 for ₹4,477 crore ($568 million).
Aggressive expansion plans
Blinkit is ramping its growth, recently appointing former Flipkart executive Vipin Kapooria as Chief Financial Officer. The company aims to establish 2,000 dark stores by the close of 2026.
Meanwhile, competitors are also scaling up. Swiggy Instamart has introduced a dedicated app for quick commerce. At the same time, Zepto’s CEO Aadit Palicha announced that the company’s annualised gross order value (GOV) has tripled to $3 billion (~₹24,500 crore) over the past eight months. Blinkit’s GOV for Q2 FY25 is slightly ahead at ₹24,528 crore.
Diversifying beyond groceries
Quick commerce providers are broadening their offerings beyond groceries, delving into ultra-fast food delivery. Blinkit recently launched Bistro, a standalone app for 10-minute food deliveries to compete directly with Zepto Cafe, Swiggy’s Instacafe/Bolt, and similar services.
Zomato’s substantial investment highlights its determination to maintain Blinkit’s market leadership as the quick commerce industry continues to evolve rapidly.
