Food tech giant Zomato has pumped Rs 1,500 crore (nearly $178 million) into its quick commerce subsidiary, Blinkit, reinforcing its aggressive expansion strategy. This investment follows Blinkit’s Rs 500 crore funding round just a month ago.
According to a regulatory filing with 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 per share, raising the capital.
The fresh funding comes on the heels of Zomato’s Rs 8,500 crore capital raise through a Qualified Institutions Placement (QIP) three months ago. The company intends to leverage these funds to bolster its financial position and drive growth, particularly in the quick commerce space.
Zomato reported an impressive 64.4% year-on-year increase in operating revenue, reaching Rs 5,405 crore in Q3 FY24, up from Rs 3,288 crore. However, net profits declined by 57.2% to Rs 59 crore in the same period. Blinkit, on the other hand, witnessed a massive 117% growth in operational revenue, surging from Rs 644 crore to Rs 1,399 crore in Q3 FY25.
The investment also intensifies competition with Swiggy, which recently infused Rs 1,000 crore ($117 million) into its supply chain unit, Scootsy Logistics, to support Instamart’s expansion. According to Citi’s latest report, Blinkit currently leads India’s quick commerce market with a 41% share, followed by Zepto, while Swiggy Instamart trails at 23%.
With this latest capital injection, Zomato is signalling its intent to maintain Blinkit’s dominance in the high-stakes quick commerce battle.
