Blinkit – Doz World Matter

Food delivery aggregator Zomato has finally initiated its Qualified Institutional Placement (QIP) issue, with the goal of raising ₹8,500 crore (~$1Bn). The issue opened on Monday, November 25, following approval from the company’s board of directors. The floor price for the QIP has been set at ₹265.91 per share, approximately 2.8% below the stock’s current market value.

The funds raised through this QIP will primarily support Zomato’s quick commerce unit, Blinkit. According to the company’s filings, ₹2,137 crore will be allocated toward establishing and managing dark stores and warehouses, which are crucial for improving delivery times and scaling operations. Blinkit, which specializes in fast deliveries and has a presence in the domestic quick-commerce segment, aims to increase its network to 1,000 dark stores by the end of the current fiscal year, as well as double that figure by 2026.

In addition to this, funds will also be deployed to strengthen the company’s market presence. This will be done through driving investments in advertising, marketing, and branding initiatives, as well as improving Zomato’s tech infrastructure (including its cloud capabilities). A total of ₹2,492 crore will be deployed towards promotional initiatives across the company’s offerings. In addition to announcing the QIP, Zomato disclosed that its CEO and co-founder, Deepinder Goyal, has extended his salary waiver until March 31, 2026. This extension mirrors a prior decision in 2021, where Goyal opted to forgo his salary for 36 months.

The announcement of the QIP coincided with a sharp rise in Zomato’s share price, which gained 7.6% on the day, marking its highest level in over three months. Shares peaked at Rs 284.34 on the NSE before closing at Rs 273.31, up 3.45% from the previous close. Zomato’s shares are currently priced at ₹274.66, which is still more than the floor price of the QIP. Overall, Zomato’s stock has clocked a strong annual growth, increasing by 120.5%. Over the past year, Zomato’s shares have risen by 140.1%.

This development comes at a time when the Indian quick commerce sector is witnessing rapid growth and intensifying competition. The market is valued at $3.34 billion this year and is expected to reach $9.95 billion within a period of five years (clocking a CAGR of more than 4.5% during the period). Blinkit’s rivals include the likes of Zepto and Swiggy Instamart, and both are expanding their operations. Zepto aims to have a network of 700 dark stores by FY25, while Swiggy Instamart plans to increase its count from 557 to 741.

Quick commerce startup Blinkit – acquired by Zomato in 2022 – has now debuted a 10-minute ambulance service, allowing users to access it through the app. After groceries, fashion items, printing documents, stationery, and more, Blinkit has announced this new service. Currently being rolled out as a pilot, the service is expected to expand in a phased manner.

Blinkit – which posted a revenue of ₹1,156 crore in Q2 FY25 – has initially launched its new 10-minute ambulance service in Gurugram. For now, the service will be available in the city with five ambulances. Each ambulance under this new service will come with a paramedic, an assistant, and a trained driver.

Additionally, these ambulances will be equipped with essential life-saving equipment, including oxygen cylinders, an Automated External Defibrillator (AED), a stretcher, a monitor, a suction machine, and necessary emergency medicines and injections.

“We are taking our first step towards solving the problem of providing quick and reliable ambulance service in our cities. The first five ambulances will be on the road in Gurugram starting today. As we expand the service to more areas, you will start seeing an option to book a Basic Life Support (BLS) ambulance through the Blinkit app,” Dhinsa wrote in his post.

However, CEO Albinder Dhindsa also mentioned that the service will expand to all major cities within the next two years. In his post, a photo displays a price tag of Rs 2,000. More importantly, the photo also includes a line stating a condition that neonatal or ventilator care is not supported.

Originally founded as a grocery delivery platform, Grofers, back in 2013 – Blinkit now operates in around 44 cities across the country, including tier-II cities like Haridwar, Jodhpur, Mohali, and Rohtak, among others. Speaking about its financials, Blinkit reported impressive growth in the September quarter of the financial year 2024-25 (Q2 FY25), with revenue more than doubling from ₹505 crore to ₹1,156 crore. On a quarter-on-quarter basis, revenue surged by 23%, rising from ₹942 crore.

Going forward, Blinkit plans to expand its network to 1,000 dark stores by the end of the financial year 2024-25, with an aim to double this number by 2026. Notably, Zomato initiated its Qualified Institutional Placement (QIP) issue in November 2024, aiming to raise ₹8,500 crore (~$1 billion). This move becomes even more significant as the funds raised through the QIP will primarily support the company’s quick commerce unit – Blinkit.

This development comes at a time when the Indian quick commerce sector is witnessing intensified competition, with major giants, including Amazon, eyeing entry into the market. This will further raise the bar for Blinkit and its current rivals – Zepto, BigBasket, Swiggy Instamart, and others. Meanwhile, the Indian quick commerce market is valued at $3.34 billion in 2024 and is expected to reach $9.95 billion within the next five years, with a CAGR of over 4.5% during this period.

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