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Bengaluru, June 24
Zomato’s board has approved the acquisition of quick commerce company Blinkit for ₹4,447 crores or $570 million.
The acquisition has happened at a discounted valuation as compared to Blinkit’s unicorn valuation ($1 billion) in 2021. Post the acquisition, the Blinkit team and CEO Albinder Dhindsa will continue to run the company as an independent entity and app.
“We will explore ways in which Blinkit can benefit from Zomato’s large customer base (and vice versa in the long term). Post the deal closure, we are going to start experimenting with various ideas that we have and see which all bear fruit, including having the Blinkit tab on the Zomato app. As they say, experiment a lot and keep what works. This remains our guiding motto,” said Zomato CEO Deepinder Goyal.
Focus on quick commerce
Talking about the deal, Goyal said that quick commerce has been Zomato’s stated strategic priority since the last one year. “We want to focus on quick commerce as a natural extension of our food delivery business. Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers,” he said.
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Zomato board likely to approve Blinkit acquisition on June 24
Blinkit raised around $120 million from Zomato at a $1 billion valuation in June 2021Adding to this, Zomato CFO Akshant Goyal said, “Quick commerce increases our addressable market, the potential profit pool and also makes our business more defensible. The peak demand times for food delivery are also complementary to the quick commerce demand peaks in non-meal times. This will help increase our hyperlocal delivery fleet utilisation and reduce the cost of delivery.
The closing of the transaction is expected to happen in early August. The transaction is subject to shareholders’ and stock exchange approval.
The food delivery major saw its net loss widen to ₹359 crore in Q4 FY22 compared to ₹134 crore in Q4 FY21. Consolidated revenue from operations grew to ₹1,212 crore . (₹692 crore). Adjusted EBIDTA loss reduced by 15 per cent to ₹220 crore in Q4FY22 and adjusted revenue grew 8 per cent quarter-over-quarter to ₹1,540 crore.
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