Zomato Acquires Blinkit in $569 Million Deal, Enters Quick Commerce Segment
The transaction is expected to close in early August this year
Food delivery platform Zomato has agreed to acquire quick commerce startup Blinkit for $569 million in an all-stock deal.
"This foray into the next big category is timely as our existing food business is steadily growing towards profitability – Zomato has grown at a CAGR of 86 per cent in the last 4 years to an adjusted revenue of INR 55.4 billion ($710 million) while the adjusted EBITDA margin has improved from (153 per cent) in FY19 to (18 per cent) in FY22," the company said in a blogpost.
The Blinkit team and its founder Albinder Dhindsa will continue to run the business. Talking about the total addressable market for grocery delivery, Deepinder Goyal, founder and CEO of Zomato said in the blogpost, "Grocery is the hook for quick commerce, but it is not just about grocery. Quick commerce naturally extends across multiple categories including beauty & personal care, electronics, OTC pharma, stationery, other gift items, etc. Categories other than grocery help the quick commerce business make higher margins, and attain higher AOVs. Total commerce market in India is $1.3 trillion and in the long term, we see quick commerce emerging as a significant channel of demand for customers at least in the top cities."