Zomato buys Blinkit in $569 mn deal in quick-commerce push

Online food delivery platform Zomato announced a deal to acquire quick-commerce platform Blinkit for Rs 4,447 crore or $569 million in an all-stock deal.
Zomato delivery partnerZomato already owns more than 9 percent stake in Blinkit (earlier Grofers) as it raised $100 million from Zomato in August last year.

“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 percent in the last four years to an adjusted revenue of $710 million while the adjusted EBITDA margin has improved from (153 percent) in FY19 to (18 percent) in FY22.
Online food delivery and quick commerceBlinkit 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.

In 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.