Blinkit is an Online grocery delivery platform that has secured around 60 million USD in its fresh funding round from Zomato. The investment will help the firm to compete with Swiggy and Zepto. The quick commerce firm plans to use this investment to scale its business, improve its platform, expand its supply chain, and increase its customer reach while developing its market presence.
The board has approved a resolution to issue 2,537 equity shares at an issue price of Rs 19,70,181 per share to raise $60 million. The fundraising came two months after the food tech giant Zomato raised Rs 8,500 crore through Qualified Institutions Placement to strengthen its financial position and expand business in the quick commerce market through Blinkit. The quick commerce platform gets grocery and other products delivered in ten minutes. Blinkit also offers baby care, pet care, stationery items, and other household products through its application.
The company has secured around $757 million across multiple funding rounds since its inception, including $150 million raised from Zomato during its conventional debt funding round. After this round, Zomato acquired the firm for 568 million USD. The grocery delivery platform has a product catalog including fruits, vegetables, snacks, spices, and dairy products. Blinkit faces competition from other grocery delivery services such as Zepto, Swiggy, and FirstClub.
Zomato posted a 68.5 percent QoQ increase in its revenue from operations to Rs 4,799 crore in the second quarter of the ongoing financial year. The company also noticed 4.8X increase in net profit to Rs 176 crore in the same duration. The food delivery platform allows users to browse the menu and order food online. Zomato has raised around 1.69 billion USD across multiple funding rounds to date.
Blinkit reported a 129 percent increase in its operational revenue to Rs 1,156 crore in the first quarter of FY25. The launch of new stores and increased order frequency contributed to the firm’s overall revenue. This is the second investment from Zomato in Blinkit within the last seven months. The company aims to enter the quick-commerce market segment and offer more innovative solutions while gaining customer’s trust.
Conclusion :
Blinkit is a Gurugram-based quick-commerce startup offering an online platform for grocery supply delivery. The startup got fresh capital of $60 million from the food tech giant Zomato. The board at Blinkit passed a resolution to allot 2,537 equity shares with an issue price of 19,70,181 each to raise Rs 500 crore. After Zomato acquired Blinkit, the company showed improved performance and reached a post-money valuation of $13 billion.
The company plans to use this amount to scale its business, improve its platform, expand its services, and strengthen its market presence. Zomato acquired Blinkit for Rs 4,477 crore in an all-stock deal and this new round is the second capital infusion of the firm in the company in the last seven months. Zomato also raised Rs 8,500 crore two months ago to strengthen its financial position and aim for market expansion.
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