India-based quick commerce firm Blinkit has reportedly laid off 5% of its total staff, which is about 1,600. The company currently has 2,000 employees on its payroll and 30,000 ground staff, MoneyControl reported, citing people familiar with the development.
Food delivery giant Zomato may grant a loan of between US$75 million and US$100 million to Blinkit as the latter grapples with a cash crunch amid rising competition.
The possible loan would come after Blinkit announced plans to set up 550 dark stores by the end of the year. The company reportedly spent 6 billion rupees (US$78.6 million) between November and February 2021 to acquire new customers.
Zomato will reportedly require approval from the Competition Commission of India to buy out Blinkit. The quick commerce firm is also supposedly in talks with venture debt firms to raise funds and recently signed a term sheet with Innoven Capital for raising debt worth US$10 million.
See also: Will India’s 10-minute quick commerce model last?
Currency converted from Indian rupees to US dollar: US$1 = 74.38 rupees.
Editing by Collin Furtado and Arpit Nayak
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
