In a strategic move, leading foodtech player Zomato, founded by Deepinder Goyal, has announced plans to invest a substantial sum of Rs 400 crore (equivalent to $48 million) into two of its key subsidiaries, Blinkit, founded by Albinder Dhindsa and Zomato Entertainment. The investment aims to bolster Blinkit’s quick commerce operations and fortify Zomato Entertainment’s endeavors in the live events and ticketing sectors.
Of the total investment, Rs 300 crore ($36 million) will be directed towards Blinkit, Zomato’s quick commerce arm, positioning it to enhance its competitive stance against rivals such as Swiggy Instamart and Zepto. Concurrently, Rs 100 crore ($12 million) will be injected into Zomato Entertainment, further supporting its expansion and development initiatives. The decision to allocate these funds was formalized by the board at Zomato, as per regulatory filings obtained from the Registrar of Companies.
This fresh investment follows Zomato’s continued commitment to Blinkit, with a total investment of Rs 2,300 crore ($277 million) since its acquisition in August 2022. Blinkit, formerly known as Grofers, was acquired by Zomato in an all-stock transaction valued at Rs 4,477 crore ($568 million).
Zomato’s latest financial results for Q4 FY24 showcased Blinkit’s notable performance, achieving EBITDA profitability and registering a robust 19.4% growth in revenue, amounting to Rs 769 crore. Overall, Zomato reported a profit of Rs 175 crore in the last quarter, reflecting the positive momentum in its various business segments.
Notably, Blinkit has garnered attention from analysts, with Goldman Sachs suggesting its valuation surpasses that of Zomato. Sanjeev Bikhchandani, founder of Info Edge, an early investor in Zomato, also expressed optimism about Blinkit’s potential, foreseeing substantial growth in its future trajectory.