E-commerce

Zomato's next frontier: Blinkit's expansion signals quick commerce takeover

Pranav Balakrishnan

May 14, 2024 | 9 Min Read

Despite posting a record profit in its latest quarterly earnings, Zomato’s core food delivery business wasn’t the star of the show. Instead, quick commerce offering Blinkit stole the limelight, with Zomato planning to double down on the business over the coming year.

Key Takeaways

Blinkit’s aggressive expansion plans for the year ahead come amid increasing competition in quick commerce
CEO Albinder Dhindsa, though, says the move has nothing to do with competition and claims Blinkit is the quick commerce leader in Bengaluru and Mumbai
Blinkit’s company structure and operations appear to have helped it win meaningful market share from rivals on their turf
While analysts raised concerns about the expansion plans impacting key profitability metrics, it is unlikely to shake investor confidence in Zomato and its quick commerce story

Yesterday, foodtech major Zomato published its earnings for the quarter ended March 2024, reporting a fourth consecutive quarter in the green. However, despite Zomato posting a consolidated profit of Rs 175 crore, a 28% increase over the previous quarter, its core business—food delivery—wasn’t the star of the show.

Instead, the limelight was stolen by the Gurugram-headquartered company’s quick commerce subsidiary, Blinkit. Even the main theme picture from the shareholder note of Zomato focused on Blinkit. Blinkit’s prominence in the Zomato story shouldn’t come as a surprise. In late April, a Goldman Sachs report stated that Blinkit’s contribution to Zomato’s market cap was larger than that of its food delivery business.

Corporate

Access unlimited content at a special discounted rate. Trusted by top VC’s and leading organizations, we provide bulk subscriptions for groups of 30+. Contact us for more details

Campus

Top educational institutions have collaborated with us for campus-wide subscriptions. For bulk campus-wide access, please get in touch.

Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds

Trusted by the best

Karthik Reddy

Blume Ventures

The CapTable brings a refreshing set of insights for us at the Blume team, highlighting stories that bring together the underlying business and founders with that of investors' journeys with these startups. It's an important perspective that very few bring to startup ecosystem enthusiasts.

Latest Articles

Sangeet Paul Choudary on why AI's real power lies in reimagining systems, not replacing tasks

Best-selling author and business advisor Sangeet Paul Choudary argues that businesses are missing AI's real impact by focusing on intelligence benchmarks rather than system transformation.

Team Captable

India's ethanol transition explained: The science, the concerns, and the road ahead

As India moves from E10 to E20 ethanol-blended petrol, consumers and automakers weigh cost savings, environmental gains, and the engineering trade-offs

Muralidhar Swaminathan

IRCTC boards the fintech express, eyeing a bigger retail and e-commerce play

IRCTC has hopped onto the fintech train as it awaits a payment aggregator licence from the RBI. Payments will only be a slice of its expanding non-ticketing revenue pie, which already makes up 70% of the business. But can a PSU rooted in legacy systems thrive in a fast, innovation-led fintech arena?

Sohini Mitter

The IPO domino effect big money is quietly betting on

Private markets are frozen, public markets are ruthless, and investors have run out of patience — or exits. With no breakout tech, no AI glory, and flatlining valuations, India’s startups are lining up for IPOs, hoping Dalal Street will do what VCs won’t.

Nikhil Patwardhan

When the music pauses: What’s the way forward for Agritech startup Gramophone

Agritech startup Gramophone battles shutdown rumours and a deep fall in valuation, but CEO Tauseef Khan insists the company has in recent months turned profitable and is growing

Parvathi Benu

Convinced that The Captable stories and insights
will give you the edge?

Convinced that The Captable stories
and insights will give you the edge?

Subscribe Now

Stories

Explore