Decoding Zomato-Blinkit deal and quick commerce’s next phase

Decoding Zomato-Blinkit deal and quick commerce’s next phase

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Aditi Shrivastava

145 reads
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Aditi Shrivastava

145 reads

Zomato is going for a share-swap deal to buy Blinkit, which indicates that conserving cash is again a priority for India’s largest consumer internet companies. But for Zomato’s investors, this could mean a significant dilution of stake — all for entry in a business where numbers don’t add up yet

March 16, 2022

10 MINS READ

When Grofers raised $100 million from Zomato in July last year, its employees started viewing the food delivery giant as their parent company. The technicalities — Zomato held only a 10% stake at this point — didn’t matter as they saw signs of an imminent change.

Soon, Grofers rebranded itself as Blinkit and shifted its business model from private label-focused, next-day dispatch of groceries to delivery in 10 minutes.

“You see when conversations about a pivot to quick commerce started to happen within the company sometime in May-June, the writing on the wall was clear. The business was being reset to build what Zomato wanted,” said an engineering team member at Blinkit, requesting anonymity. 

An acquisition made sense for both companies. Quick commerce was the only thing missing in Zomato’s game, while strategy-hopping Blinkit needed a fresh beginning after the nth stumble. However, the timing wasn’t right. 

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