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

24-06-2022 Fri 22:35 IST | IANS | Business
Zomato acquires 15-minute delivery platform Blinkit for Rs 4,447 cr

New Delhi, June 24 : 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.


More News
Super proud of 'Har Ghar Tiranga' initiative, says Ram Charan
6 minutes ago
HC Collegium elevates judges whom they know: SCBA president
8 minutes ago
People of African origin participate in I-Day celebrations in Hyderabad
11 minutes ago
Tammineni Krishnaiah murder: Tummala says accused will not be spared
51 minutes ago
Two die of electrocution while hoisting national flag in T'gana
59 minutes ago
Bigg Boss fame Urfi Javed accuses man of threatening her to 'Have Video Sex'
1 hour ago
How often you must exercise?
1 hour ago
Watch: Mamata Banerjee dances with folk artists at Independence Day fete in Kolkata
1 hour ago
Vidya Sinha, veteran Bollywood actress passed away on Independence Day
2 hours ago
As new Ram temple shapes up, ghats of Saryu river get a facelift
2 hours ago
Bharat Biotech's intranasal Covid vaccine proven safe in clinical trials
2 hours ago
Indigo flight delayed over 'suspicious message' on passenger's phone
2 hours ago
UK becomes first country to approve new vaccine targeting Omicron
2 hours ago
Padma Lakshmi hopes for 'swift healing' for ex husband Salman Rushdie
4 hours ago
Ayodhya prepares for 3-fold increase in tourist arrivals with brand new look
4 hours ago
Ram temple opening timed perfectly for BJP's 2024 campaign
4 hours ago
'Politics of hate to hide failures': KCR hits out at Centre
4 hours ago
TRS leader's murder triggers tension in T'gana's Khammam
5 hours ago
Not even my family could attend swearing-in ceremony: CJI on Covid crisis
5 hours ago
This smart contact lenses can diagnose cancer from tears
7 hours ago
Advertisement
Video News
Telangana: CM KCR once again skips the governor's "At home" gathering
Telangana: CM KCR once again skips the governor's "At home" gathering
18 minutes ago
Advertisement 36
Myanmar Court sentences Aung San Suu Kyi to 6 yr prison in corruption cases
Myanmar Court sentences Aung San Suu Kyi to 6 yr prison in corruption cases
34 minutes ago
Hyderabad: Man dies of heart attack while giving Independence Day speech
Hyderabad: Man dies of heart attack while giving Independence Day speech
1 hour ago
Watch: CM Jagan and YS Bharati visuals at 'At Home' event at AP Raj Bhavan in Vijayawada
Watch: CM Jagan and YS Bharati visuals at 'At Home' event at AP Raj Bhavan in Vijayawada
2 hours ago
Hatya official Telugu trailer (HDR)- Vijay Antony, Ritika Singh
Hatya official Telugu trailer (HDR)- Vijay Antony, Ritika Singh
2 hours ago
Viral video: A group of shoppers pushing their way out of Ikea store in China. Know why?
Viral video: A group of shoppers pushing their way out of Ikea store in China. Know why?
3 hours ago
Jabardasth latest promo - 18th August 2022 - Sangeetha, Indraja, Rashmi Gautam
Jabardasth latest promo - 18th August 2022 - Sangeetha, Indraja, Rashmi Gautam
3 hours ago
Hyderabad-origin astronaut Raja Chari shared photo and wished Indians from space station
Hyderabad-origin astronaut Raja Chari shared photo and wished Indians from space station
3 hours ago
Macherla Niyojakavargam Mass Blockbuster promo - 4- Nithiin, Krithi Shetty, Vennela Kishore
Macherla Niyojakavargam Mass Blockbuster promo - 4- Nithiin, Krithi Shetty, Vennela Kishore
3 hours ago
Angry villagers attacked CPM Tammineni Koteswara Rao house after the murder of Tammineni Krishnaiah
Angry villagers attacked CPM Tammineni Koteswara Rao house after the murder of Tammineni Krishnaiah
4 hours ago
TRS member Tammineni Krishnaiah murdered brutally in Khammam district
TRS member Tammineni Krishnaiah murdered brutally in Khammam district
5 hours ago
Pippa official teaser: Ishaan Khatter, Priyanshu Painyuli, Mrunal Thakur and Soni Razdan
Pippa official teaser: Ishaan Khatter, Priyanshu Painyuli, Mrunal Thakur and Soni Razdan
5 hours ago