Food tech giant Zomato has taken a decisive leap in to the quick commerce arena by investing Rs 1,500 crore (nearly $178 million) in its subsidiary Blinkit, just a month after closing a Rs 500 crore funding round.
According to a regulatory filing from the Registrar of Companies (RoC), Blinkit’s board approved a special resolution to issue 7,612 equity shares at an issue price of Rs 19,70,181 each, underscoring the company’s commitment to scaling up its operations.
This latest capital boost follows closely on the heels of a significant Rs 8,500 crore fundraising through a Qualified Institutions Placement (QIP), intended to reinforce Zomato’s financial foundation and accelerate strategic initiatives in the rapidly growing quick commerce sector.
The move comes as Zomato recorded a notable 64.4% year-on-year increase in operating revenue during Q3 FY24, reaching Rs 5,405 crore, despite a 57.2% drop in profits to Rs 59 crore.
Blinkit, in its own right, is showcasing strong performance with revenue from operations surging by over 117% in Q3 FY25—from Rs 644 crore to Rs 1,399 crore. The robust growth signals promising momentum as the company scales its delivery capabilities and expands its market footprint.
Zomato’s investment also intensifies competition with its arch-rival Swiggy. Last week, Swiggy injected Rs 1,000 crore (approximately $117 billion) into its supply chain unit, Scootsy Logistics, to bolster its quick commerce arm, Instamart.
However, a recent Citi report indicates that while Instamart lags with a 23% market share, Zomato-backed Blinkit and competitor Zepto are capturing larger slices of India’s rapid delivery market, with Blinkit leading at 41%.