Zomato Injects Rs 1,500 Crore into Blinkit as Quick Commerce Battle Intensifies

Food tech leader Zomato has invested Rs 1,500 crore (approximately $178 million) in its quick commerce subsidiary, Blinkit, barely a month after completing a Rs 500 crore funding round.

According to regulatory filings accessed from the Registrar of Companies (RoC), Blinkit's board passed a special resolution to issue 7,612 equity shares at an issue price of Rs 19,70,181 each to raise the Rs 1,500 crore.

This substantial capital injection comes just three months after Zomato raised Rs 8,500 crore through a Qualified Institutions Placement (QIP). Zomato revealed that BlinkIt would use the fresh infusion of cash to strengthen its financial position. They are also looking to expand their business.

The Gurugram-based company reported impressive financial results for the third quarter of the current fiscal year. Operating revenue grew 64.4% year-on-year to Rs 5,405 crore, up from Rs 3,288 crore in Q3 FY24. However, profits declined by 57.2% to Rs 59 crore during the same period.

Blinkit has significantly contributed to Zomato's growth, with its revenue from operations surging over 117% to reach Rs 1,399 crore in Q3 FY25, compared to Rs 644 crore in the same quarter last year.

The investment comes amid heightened competition in India's quick commerce space. Just last week, Zomato's chief competitor, Swiggy, infused Rs 1,000 crore ($117 million) into its supply chain unit Scootsy Logistics to strengthen its quick commerce arm, Instamart.

According to a recent report from Citi, Zomato-owned Blinkit currently dominates India's competitive rapid delivery market with a 41% share, while Swiggy Instamart trails at 23%. This highlights the growing importance of the quick commerce battlefield for India's food delivery giants.