Athira Sethu
Kochi, 25 February 2025
Zomato has infued Rs 1,500 crore more in Blinkit-its quick-commerce business, a month after investing Rs 500 crore, an Economic Times report said. The latest investment takes the amount, Zomato has invested in Blinkit since buying it in August 2022, to Rs 4,300 crore.
The funds are coming at a time when Blinkit is expanding fast, with a key priority being to raise the number of its “dark stores” in order to further establish itself as a market leader. The dark stores, specialized warehouses that are utilized to service online orders, are set to increase in a big way.
Blinkit has made a target of opening 2,000 dark stores by 2026. Furthermore, the organization is also making efforts to enhance its products, which now include higher-end products such as TVs, laptops, and printers. This is done with the intent of raising the average value of every order placed on the platform.
Earlier, in November 2024, Zomato raised Rs 8,500 crore via a special institutional placement, primarily to shore up its finances and fund Blinkit’s growth. Although Blinkit was on the verge of breaking even in its operations in the second quarter of fiscal year 2025, it still incurred an operational loss of Rs 103 crore in the third quarter of FY25. The losses were primarily due to the fast expansion of its dark store network.
The latest funding injection will enable Blinkit to maintain its aggressive growth plan, particularly in the face of intense competition from other quick-commerce players, including Zepto. It is reported that Zepto is burning Rs 350-400 crore a month in its bid to take market share. Hence, Zomato’s ongoing financial backing is paramount to Blinkit’s quest to expand and compete in the increasingly saturated quick-commerce segment.