Blinkit receives Rs 1,500 fund injection from parent company Zomato

Quick commerce business Blinkit has received a funding injection of Rs 1,500 crore from its parent company Zomato to help fuel its agressive expansion plans and cover losses. 

“Blinkit’s revenues are enough to cover its operational needs but the current burn rate is high leading to a need for cash to be infused in the firm,” an anonymous source close to the development told ET Tech. A regulatory filing made at the Registrar of Companies showed the transaction, which followed on from a Rs 500 crore investment by Zomato in Blinkit last month. 

“Expansion costs are unavoidable, whether incurred through marketing or idle expenses,” Blinkit’s CEO Albinder Dhindsa told the Economic Times. “Most of our current burn is due to expansion. Based on growth trends, we could have covered our expansion costs. However, we couldn’t do that because of the higher marketing expenses.”

Since Zomato acquired Blinkit in 2022, the business has invested a total of Rs 4,300 crore in the quick commerce player. Although Blinkit is one of India’s largest quick commerce businesses and its delivery network covers more pin codes than many of its competitors, the market is becoming increasingly competitive as large e-commerce businesses embrace quick commerce and new companies enter the mix.