Zomato Infuses Rs 300 Crore in Blinkit and Rs 100 Crore in Entertainment Arm

New Delhi, June 11 (IANS) – Online food delivery platform Zomato has injected Rs 300 crore into its quick commerce subsidiary, Blinkit, as this segment is projected to outpace its core food delivery business. The company’s board approved this investment, as revealed in filings with the Registrar of Companies accessed via TheKredible.

In addition to this substantial investment in Blinkit, Zomato is also channeling Rs 100 crore into Zomato Entertainment, its events arm focused on curating and selling tickets for concerts, parties, and festivals.

Since acquiring Blinkit in an all-stock transaction valued at Rs 4,477 crore ($568 million) in August 2022, Zomato has invested a total of Rs 2,300 crore ($277 million) into the quick commerce platform. Notably, Blinkit turned adjusted EBITDA positive in March, contributing to Zomato’s Rs 194 crore adjusted EBITDA for the January-March quarter of FY24. This represents a significant improvement, with consolidated adjusted EBITDA rising by Rs 369 crore compared to the same period last year.

Zomato reported adjusted revenue of Rs 3,873 crore for the quarter, marking a 61% year-on-year growth. Additionally, the gross order value (GOV) for food deliveries grew by 28% year-on-year, further solidifying the company’s strong financial performance.