Zomato to bolster quick commerce presence with $36m Blinkit injection: report

Photo credit: Blinkit

Zomato is set to invest an additional US$36 million into its quick commerce division Blinkit, according to a report by Moneycontrol.

This latest funding boost brings Zomato’s total investment in Blinkit – formerly Grofers – to US$275 million since it was acquired by the Indian food delivery giant in a US$569 million all-stock deal in 2022.

Blinkit turned adjusted EBITDA positive in March this year. This was driven by higher average order values and increased order volume during the quarter ended March 2024.

Groceries are Blinkit’s bread and butter, but the platform also offers products in categories like home appliances, toys, sports, and clothing. The company grew its revenue to US$92.1 million in the said quarter, nearly double what it achieved the same period last year.

Blinkit as of March this year holds the top spot in India’s quick commerce sector in terms of market share, ahead of rivals like Zepto and Swiggy’s Instamart. As the competition heats up, Zepto is also actively seeking new funding, and Flipkart is expanding its quick commerce operations.

Swiggy, which is preparing for its IPO, is ramping up efforts in its Instamart by merging the business unit with its premium grocery offering InsanelyGood.

India’s quick commerce market is experiencing a boom, growing by 77% year over year to reach a gross merchandise value of US$2.8 billion in 2023. This rapid expansion outpaces the traditional ecommerce market, which has been growing at a slower rate of 14% and 15% annually.

See also: From bust to boom: Zomato turns the tide