Zomato buys Blinkit for USD 568 mln

Monday 27 June 2022 10:35 CET | News

India-based food delivery company Zomato has acquired instant delivery company Blinkit for USD 568 million in its instant-grocery delivery push.

The SoftBank-backed startup, which was formerly called Grofers, pivoted to instant grocery delivery in 2021. Blinkit shut many of its dark stores and scaled down the business in many cities earlier in 2022 and pledged to focus more aggressively on 10-minute grocery deliveries. The startup said if its orders can’t reach the customers in 10 minutes, it will not serve in those cities.

In Blinkit, Zomato will find a partner that can help fuel its instant grocery delivery play, or grocery altogether, two areas Zomato has previously attempted to sink its teeth in but failed.

Company officials stated that quick commerce has been their stated strategic priority since 2021. They have seen this industry grow both in India and globally, as customers have found value in quick delivery of groceries and other essentials. This business is also synergistic with their core food business.

Blinkit competes with Instamart of Swiggy, which also counts SoftBank among its investors, and YC Continuity-backed Zepto. Zomato, an older firm than all the other aforementioned names, competes with Swiggy, which in the private market has more than twice the valuation of Zomato, as per the press release.

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Keywords: ecommerce, acquisition, delivery, retail
Categories: Payments & Commerce
Companies: Blink, Zomato
Countries: India
This article is part of category

Payments & Commerce