Akshata Sharma
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Deepinder Goyal-led Zomato is investing Rs 300 crore in its 10-minute grocery delivery arm, Blinkit, to enhance its offerings amid the growth of rising competitors Zepto and Swiggy Instamart.
Zomato's total investment in Blinkit has now reached Rs 2,300 crore since it acquired the company in August 2022, according to a regulatory filing made with the Registrar of Companies (RoC).
In addition to Blinkit, the food delivery giant is set to invest Rs 100 crore in Zomato Entertainment, a subsidiary that controls the firm's live events and ticketing businesses.
Competitive pressures
The quick commerce space is becoming increasingly competitive. Blinkit is vying with Swiggy Instamart, Zepto, and Tata BigBasket. Swiggy, which is preparing for an IPO, announced a $700 million investment in Instamart.
Zepto is raising $300 million in fresh funding, and Flipkart is also setting up its quick commerce business after failed talks to acquire Zepto.
Quick commerce growth
Quick commerce involves delivering groceries and other items within 10 minutes. Initially focusing on essentials like milk and vegetables, it has expanded to include categories such as fashion and home decor.
Investing in Zomato Entertainment
In addition to the Rs 300 crore for Blinkit, Zomato is investing Rs 100 crore in its subsidiary, Zomato Entertainment, which handles live events and ticketing.
The diversified approach shows Zomato's intent to grow beyond food delivery. Blinkit aims to increase the number of dark stores to 1,000 by March 31, 2025, and diversify product categories to compete with larger online marketplaces like Amazon and Flipkart.
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