Friday, Aug 19, 2022
English News
  • Hyderabad
  • Telangana
  • Andhra Pradesh
  • India
  • World
  • Entertainment
  • Science and Tech
  • Sport
  • Business
  • ...
    • NRI
    • View Point
    • cartoon
    • Columns
    • Reviews
    • Education Today
    • Property
    • Videos
    • Lifestyle
E-Paper
  • NRI
  • View Point
  • cartoon
  • Columns
  • Reviews
  • Education Today
  • Property
  • Videos
  • Lifestyle
Home | Business | Zomato Acquires 15 Minute Delivery Platform Blinkit For Rs 4447 Cr

Zomato acquires 15-minute delivery platform Blinkit for Rs 4,447 cr

By Agencies
Published: Updated On - 04:28 PM, Thu - 4 August 22
Zomato acquires 15-minute delivery platform Blinkit for Rs 4,447 cr

New Delhi: Online food delivery platform Zomato on Friday announced it had acquired quick-commerce platform Blinkit for Rs 4,447 crore (about $568 million) in an all-stock deal.

Zomato already owned more than 9 per cent stake in Blinkit (earlier Grofers).

While the earlier Blinkit deal value was around $700 million, the drop in Zomato’s share price reduced it to $568 million.

“This foray into the next big category is timely as our existing food business is steadily growing towards profitability,” said Zomato CEO Deepinder Goyal.

Zomato has grown at a CAGR of 86 per cent in the last four years to an adjusted revenue of $710 million “while the adjusted EBITDA margin has improved from (153 per cent) in FY19 to (18 per cent) in FY22”, Goyal added.

Zomato’s restaurant supplies subsidiary Hyperpure will acquire the warehousing and ancillary services business of Hands on Trade Private Ltd (HOTPL) for Rs 60.7 crore.

Akshant Goyal, Chief Financial Officer, Zomato said the company is not acquiring the B2B trading business as “that no longer fits strategically into our plans”.

“Our existing Rs 2,228 million investment in HOTPL is protected through our liquidation preference right,” he said.

Blinkit is a quick commerce marketplace delivering grocery and other essentials to customers within minutes (average delivery time of 15 minutes in the month of May).

Blinkit was rebranded from Grofers after a pivot to quick commerce last year. Their erstwhile business model was next-day grocery delivery.

“Blinkit’s business pivoted to 100 per cent quick commerce in January 2022 and since then, the business has made tremendous progress on all important and relevant metrics for this business,” said Goyal.

In the month of May 2022, Blinkit did gross order value (GOV) of Rs 4,028 million, which is 1/5th of Zomato’s monthly average food delivery GOV in Q4 of FY22.

In August last year, Blinkit (then Grofers) raised $100 million from Zomato.

“As a food company, we are already tapping into the large food delivery opportunity in India. In addition to that, we now also want to focus on quick commerce as a natural extension of our food delivery business,” said Goyal.

“Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers,” he added.

The closing of the transaction is expected to happen in early August 2022.

  • Follow Us :
  • Tags
  • Blinkit
  • Zomato

Related News

  • Celebrate a ‘sweet’ Raksha Bandhan with NIC Honestly Natural Ice Cream’s special combo offers 

    Celebrate a ‘sweet’ Raksha Bandhan with NIC Honestly Natural Ice Cream’s special combo offers 

  • Zomato, Blinkit to cross-leverage customer bases soon: Deepinder Goyal

    Zomato, Blinkit to cross-leverage customer bases soon: Deepinder Goyal

  • Man delivers resumes dressed as Zomato delivery agent, Twitter reacts

    Man delivers resumes dressed as Zomato delivery agent, Twitter reacts

  • Zomato shares tumble over 20 pc since it announced Blinkit acquisition

    Zomato shares tumble over 20 pc since it announced Blinkit acquisition

  • Zomato announces 100% ‘plastic neutral deliveries’ from April 2022

    Zomato announces 100% ‘plastic neutral deliveries’ from April 2022

  • Zomato to deliver food in 10 minutes

    Zomato to deliver food in 10 minutes

Latest News

  • Opinion: Focus on quality of education

    6 hours ago
  • Editorial: Travesty of justice

    6 hours ago
  • Rape accused who escaped from police custody beaten to death in Assam

    7 hours ago
  • New Omicron variants fuel demand for update of Covid vaccines

    7 hours ago
  • Ratio and proportion made easier

    7 hours ago
  • Telangana can’t buy, sell power: Centre

    7 hours ago
  • Candidates won’t be allowed for PWT even if late by a minute

    7 hours ago
  • Docs got Rs 1,000 crore worth freebies for prescribing Dolo

    7 hours ago

company

  • Home
  • About Us
  • Contact Us

business

  • Subscribe

telangana today

  • Telangana
  • Hyderabad
  • Latest News
  • Entertainment
  • World
  • Andhra Pradesh
  • Science & Tech
  • Sport

follow us

© Copyrights 2022 TELANGANA PUBLICATIONS PVT. LTD. All rights reserved. Powered by Veegam