Food delivery platform Zomato has decided to invest Rs 300 crore in Blinkit. Zomato bought Blinkit in August 2022. With this new investment, Zomato’s investment in Blinkit will increase to Rs 2300 crore. The business of quick commerce company Blinkit is growing rapidly. To support this, Zomato has decided to increase its investment.
Zomato Bought Blinkit For Rs 4477 Crore
Zomato provided this information in its regulatory filing on Tuesday. According to the Economic Times report, Zomato bought Blinkit with an investment of about Rs 4477 crore. Blinkit was earlier known as Grofers. Even after this, Zomato has continuously invested to increase Blinkit’s business. So far, Zomato has given about Rs 2000 crore to Blinkit. Now, a decision has been taken to provide Rs 300 crore more.
Zomato Will Also Invest Rs 100 Crore In Entertainment
According to the report, Zomato will invest about Rs 100 crore in its subsidiary, Zomato Entertainment Private Limited. Zomato Entertainment is in the live events and ticketing business.
Swiggy Instamart and Zepto Are Giving Tough Competition To Blinkit
With the boom in the Quick Commerce sector, competition is also increasing rapidly. Blinkit is facing tough competition from Swiggy Instamart and Zepto. Zepto has support from Nexus Venture Partners. Swiggy is Zomato’s main competitor in the food delivery and dine-out segment. Swiggy recently submitted papers to SEBI to bring an IPO of Rs 10,414 crore. On the other hand, Zepto is also trying to raise $300 million in funding. Apart from this, Flipkart will also enter the quick commerce segment soon.
Blinkit’s Dark Stores Are Constantly Increasing
Recently, Zomato said that it is increasing Blinkit’s dark stores. By March 2024, Blinkit’s dark stores have increased from 562 to 1000. Apart from this, the product category is also being increased on Blinkit. Those items will also be available on this platform, on Amazon and Flipkart. Blinkit’s business has become more significant than Zomato’s food delivery business.
