The Board of Directors of Zomato, a food delivery and Restaurant aggregator company based in Gurgaon, Haryana, has approved the acquisition of Blink Commerce Private Limited.
Famously known as Blinkit, Blink Commerce Private Limited is a quick commerce marketplace. Grocery and other essential materials are delivered to the customer within a few minutes of ordering.
According to Zomato’s filing with the Bombay Stock Exchange, the company is acquiring 33,018 equity shares of Blink Commerce Private Limited. Each share is priced at Rs 13,46,986.01. The total deal is worth, 4447 crores of Indian rupes ($568 million).
Zomato owns a 9% stake in BCPL with 3,249 shared. One equity share and, 3248 preference shares.
Zomato informed its shareholders that this move will help the company succeed in the long term. According to the food delivery company, taking up the quick commerce business has been part of its plans and objectives since the last year. The company has analysed the growth of the quick commerce industry all around the world.
This deal can be seen as an action by Zomato to achieve its strategic priorities and goals in the delivery business.
Zomato CEO Deepinder Goyal said that stepping into quick commerce is crucial as their existing food delivery business was steadily growing with profits.
He also added that the company has seen a CAGR growth of 86% in the last four years. Adjusted revenue is $710 million. Adjusted EBITDA margin has been imported from 15.3% in FY19 to 18 % in FY22.
Zomato management believes that acquiring Blinkit will help them increase customer wallet share spent on their platform. “Monthly order frequency on Blinkit app was 3.5x in May 2022, which is higher than that of food delivery on Zomato.” — Deepinder said.
Blinkit and Zomato together can facilitate last-mile delivery and thus increase their footprint in the delivery market. Blinkit has visibility on almost 4,000 SKUs (stock-keeping units) owned by various third-party distributors and retailers.
Zomato is considering these SKUs as one of the most important assets in this acquisition.
According to various media reports, the finalization of the deal and transactions are expected to happen by the beginning of August 2022.
About Blinkit –
Earlier known as Grofers, Blinkit is one of the first entities in India to try out the instant delivery model of business in the country. With almost 10 million Indian customers and, 200000 orders every day, it is one of the biggest quick commerce enterprises in the country.
The company founded in 2013, in Gurgaon, Haryana is backed by the famous SoftBank group.