The well-known online meal delivery service Zomato is investing strategically in Blinkit, a division of its fast commerce business that was once known as Grofers. The total investment is Rs 300 crore, or about $36 million. This decision was made because Blinkit is up against fierce competition in the online grocery industry from companies like Tata BigBasket, Zepto, and Swiggy Instamart. Data intelligence platform Tofler provided access to regulatory records containing information about this investment. Zomato hopes to improve its competitive edge and solidify its position in the quickly changing commerce industry by strengthening Blinkit’s capabilities.
Zomato invested Rs 2,300 crore in Blinkit
According to documents, Zomato invested Rs 2,300 crore in Blinkit, which it purchased in August 2022. This latest round of funding illustrates how important the division has become to the food aggregator’s ability to keep ahead of competitors. Before being acquired by Zomato, Blinkit was a company constantly facing crises.
Also read: How Blinkit Has Become One of the Most Successful Startups Ever
This is why its dominance in the rapid commerce area contrasts entirely with its previous state. The other businesses in the sector are Tata BigBasket, Zepto, Swiggy, and Instamart. For Rs 4,447 crore, the Gurugram-based Zomato purchased Blinkit, previously Grofers, in a distressed sale. Investors viewed Zomato’s 2022 acquisition of Blinkit as a rescue, and the company’s shares fell. Nonetheless, Zomato remained upbeat about Blinkit.
Swiggy Stepping Up Quick Commerce Game
The funding also coincides with Zepto, a close rival, conducting a new fundraising round and Flipkart launching its expedited commerce venture. Zomato’s fiercest competitor, Swiggy, is stepping up its rapid commerce division, Swiggy Instamart, as it prepares to go public later this year.
Zomato wants to be a key player in the rapid commerce area, where groceries and other necessities are delivered in minutes, and this investment shows the company’s commitment to Blinkit. Zomato intends to increase its market share in the cutthroat online grocery industry, boost service options, and expedite delivery times by investing Rs 300 crore in the quick commerce company. This action demonstrates Zomato’s commitment to meeting customer needs and maintaining an advantage over competitors such as Swiggy Instamart, Zepto, and Tata BigBasket.
