India’s largest quick-commerce platform, Blinkit, has received a Rs 1,500 crore capital boost from its parent company, Zomato, as per a regulatory filing with the Registrar of Companies (RoC).
This fresh infusion follows a Rs 500 crore investment made by Zomato last month. Since acquiring Blinkit in August 2022 for Rs 4477 crore through an all-stock deal, Zomato has now pumped a total Rs 4300 crore into the company. Blinkit, formerly known as Grofers, continues to be a critical part of Zomato’s expansion strategy in the burgeoning quick-commerce sector.
According to an Economic Times report, the recent funding aims to help Blinkit cover its operational losses as it aggressively expands in a fiercely competitive market. While the company’s revenues are reportedly sufficient to sustain operational expenses, high cash burn due to expansion also needs external financial support.
Blinkit CEO Albinder Dhindsa, in an interview with The Economic Times, acknowledged that much of the cash burn stems from growth initiatives. “These expansion costs are unavoidable, whether incurred through marketing or idle expenses. Most of our current burn is due to expansion. Based on our growth trends, we could have covered our expansion costs. However, we couldn’t do that because of the higher marketing expenses,” he had said.
In November 2024, Zomato raised Rs 8,500 crore through a qualified institutional placement (QIP) to strengthen its balance sheet. As of December 31, 2024, Zomato had Rs 19,235 crore in cash reserves, showing resources to support Blinkit’s expansion and mitigate losses.
Blinkit’s rivals, Swiggy and Zepto, have also secured substantial funding in the past year. Swiggy raised Rs 4,500 crore through its IPO in November 2024 and announced an additional Rs 1,000 crore investment in its supply chain subsidiary, Scootsy Logistics, which operates dark stores for its Instamart service. Zepto, on the other hand, closed multiple funding rounds totaling over $1.3 billion in 2024.
In the October-December 2024 quarter, Blinkit reported an operational loss of Rs 103 crore, a significant increase from the Rs 8 crore loss in the preceding quarter. Swiggy, with a consolidated net loss of Rs 799 crore, saw Instamart post an EBITDA loss of Rs 578 crore during the same period, up from Rs 358 crore in Q2 FY2025.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
