Albinder Dhindsa, co-founder and CEO of Zomato-owned Blinkit, said the company isn’t worried about new competitors. He believes there’s enough room for everyone and that Blinkit will keep focusing on its customers.
Blinkit’s parent Zomato to raise funds via QIP
According to Economic Times, Blinkit CEO commented at the India Mobile Congress 2024, “We are not too worried about competition entering the space. The space is not small. We provide customers with a service they didn’t know they needed. We will stay focused on the customer.”
Continue Exploring: Zomato shares dip 5.4% as board considers INR 8,500 Cr fundraising through QIP
On the same day, food tech giant and Blinkit parent company announced its board would consider raising funds through qualified institutional placement (QIP) at their October 22 meeting. Though the amount wasn’t disclosed, reports suggest Zomato aims to raise INR 9,000 crore to boost its quick commerce business.
Blinkit revenue rises to INR 942 cr in Q1
Meanwhile, Blinkit made INR 942 crore in revenue in Q1 FY25, nearly 2.5 times more than INR 384 crore in the same period last year. To boost its bottom line, Blinkit plans to increase its dark stores to 2,000 by the end of 2026. In June 2024, Zomato announced plans to invest INR 300 crore in Blinkit, but scaling up in a competitive market will likely need more capital.
Continue Exploring: Nestle India Q2 FY25 net profit dips to INR 899.5 Cr, revenue up 1.3%
However, Dhindsa’s comments come as the quick commerce space faces intense competition. Flipkart recently launched its “10-minute” delivery service, and Tata-owned BigBasket and Reliance-backed JioMart have also entered the quick commerce market.
Furthermore, Swiggy, running Instamart, aims for an IPO by year-end. This could help the Bengaluru-based foodtech raise significant funds to strengthen its quick commerce operations.
Similarly, Zepto has raised over $1 billion recently and was valued at $5 billion in its last funding round. The company is also reportedly in advanced talks with Motilal Oswal, high-net-worth individuals (HNIs), and family offices to raise another $100 million.
