Zomato To Invest ₹300 Cr In Quick Commerce Arm Blinkit Amidst Rising Competition

In a strategic move to fortify its position in the quick commerce sector, food delivery behemoth Zomato is gearing up to pump ₹300 crore into its quick commerce division, Blinkit. This comes amidst escalating competition with rivals Swiggy and Zepto.

What Happened: Zomato is set to infuse a hefty sum of Rs 300 crore into its quick commerce arm, Blinkit, Economic Times reported citing a regulatory filing made with the Registrar Of Companies. This decision comes at a time when the fight for market supremacy in quick commerce is becoming increasingly fierce with competitors Swiggy and Zepto.

Additionally, Zomato will put ₹100 crore into its subsidiary, ZomatoEntertainment which handles the live events and ticketing business.

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The investment is perceived as a tactical manoeuvre by Zomato to bolster its standing in the quick commerce sector, which has been experiencing a spike in demand. The firm’s choice to invest in Blinkit highlights its dedication to broadening its operations and augmenting its service offerings.

Why It Matters: The quick commerce sector in India has been witnessing a boom, with companies like Zomato, Swiggy and Zepto vying for a larger slice of the market. Zomato’s decision to invest in Blinkit is a clear indication of the company’s commitment to stay ahead in the race. The investment is expected to help Zomato enhance its service offerings and expand its operations, thereby strengthening its position in the market. This move could potentially lead to more intense competition in the sector, with rivals likely to ramp up their efforts to maintain their market share.

This fund infusion takes Zomato’s investments in Blinkit to ₹2,300 crore since its acquisition in 2022.

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