As per Blinkit’s regulatory filings, it allotted 2,537 equity shares at an issue price of INR 19.7 Lakh (19,70,181) each to raise INR 500 Cr from Zomato
“… pursuant to the resolution passed by the board of directors in its meeting held on January 6, the company has allotted 2,537 equity shares on the right issue basis,” the filing said
Prior to this, Zomato injected INR 300 Cr in Blinkit in June last year. Zomato then informed that its cumulative invested amount in Blinkit stood at INR 2,300 Cr
Listed foodtech major Zomato has infused around INR 500 Cr (about $57.7 Mn) in its quick commerce arm Blinkit.
As per Blinkit’s regulatory filings, it allotted 2,537 equity shares at an issue price of INR 19.7 Lakh (19,70,181) each to raise INR 499.83 Cr from Zomato.
“… pursuant to the resolution passed by the board of directors in its meeting held on January 6, the company has allotted 2,537 equity shares on the right issue basis,” the filing said.
The development comes nearly two months after Zomato raised INR 8,500 Cr (around $1 Bn) through its first qualified institutional placement (QIP) to expand its quick commerce business Blinkit and support other key growth initiatives.
In its QIP document, the company said it will utilise about INR 2,137 Cr from the issue towards setting up and running operations of Blinkit’s dark stores and Hyperpure’s warehouses.
Prior to this, Zomato injected INR 300 Cr in Blinkit in June last year. Zomato then informed that its cumulative investment in Blinkit stood at INR 2,300 Cr, since the latter’s acquisition in August 2022.
The development comes at a time when the competition in the quick commerce segment is rising rapidly. With the fund infusion, Zomato would look to further expand and strengthen its quick commerce offering.
Earlier this month, Blinkit officially announced the launch of its 10-minute food delivery App Bistro.
Zomato’s food delivery business reported a gross order value (GOV) of INR 9,690 Cr in Q2 FY25, while Blinkit’s GOV stood at INR 6,132 Cr for the same period.
Its counterpart Swiggy reported a GOV of INR 7,191 Crwhile its quick commerce arm Instmart reported a GOV of INR 3,382 Cr in Q2 FY25.
A report by brokerage firm JM Financial today said that Blinkit’s supply chain investments are expected to help the company better compete with its peers. The brokerage noted that Zomato is the only major hyperlocal delivery company in India that is currently generating free cash flows on a consolidated basis.
JM Financial expects Zomato’s quick commerce arm Blinkit to register a sequential GOV growth of 22.2% in Q3 FY25 on the back of a surge in order volumes driven by an increase in monthly transacting users.
Zomato reported a 389% year-on-year increase in its consolidated net profit to INR 176 Cr in Q2 FY25. However, net profit dropped 30% sequentially due to increase in expenses on account of Blinkit’s expansion spree.
Shares of Zomato ended today’s trading session 2.7% higher at INR 248.75 apiece on the BSE.
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