Tag: launches

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.

Ola launches 10 minute food delivery service ‘Dash’, expands ‘Ola Food’ via ONDC platform

February 26, 2025

Jeff Prescott

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Indian ride-hailing giant, Ola – which saw its valuation cut to $2 billion by Vanguard earlier this month, is jumping into the quick commerce game — more specifically into the quick food delivery space. It today announced ‘Dash’, a 10 minute quick delivery service in the food space — a model that is highly debated, specially over what quality of food one can get served in 10 minutes. Along with this, it has also announced nationwide expansion of its food services ‘Ola Food’ with the Open Network for Digital Commerce (ONDC), a government initiative to provide an open network for exchanging goods and services digitally.

At present, the Dash service is being launched in Bengaluru,. With the government-run Open Network for Digital Commerce (ONDC) – gaining massive popularity among startups and major conglomerates like Adani and Reliance – Ola is now trying to leverage its combined scale, efficiency, and cost savings.

Founded in 2010 and becoming a unicorn in 2015, Ola Consumer (previously ‘Ola Cabs’) has announced plans to deploy 100,000 electric two-wheelers over the next two years as part of its efforts to drive electrification in ride-hailing. Interestingly, this announcement comes at a time when India’s consumer regulator, the Central Consumer Protection Authority (CCPA), is investigating (formally initiated on November 6, 2024) Ola Electric – debuted with IPO in August this year – over unresolved customer complaints. However, in its defense, Ola Electric claimed it had resolved 99.1% of the reported complaints to customers’ satisfaction.

Ola Food Expansion Plan

Speaking about Ola Food, this latest expansion will increase its operational presence to 100 cities. Backed by SoftBank, Tiger Global, Matrix Partners (now Z47), Temasek, and more, Ola Consumer – which neared 1 lakh daily orders on ONDC in August this year – is also looking to boost these numbers with subscription-free deals, offering 10 times more OlaCoins and other benefits.

If this is not enough, Ola Consumer’s new initiative – Dash – will offer freshly prepared food delivered in just 10 minutes. The company also claims that Dash delivers from a curated selection of nearby restaurants. With a pilot launch in Bengaluru, the Bhavish Aggarwal-led company plans to expand this service to other cities in the coming months.

“India’s quick commerce landscape is at a pivotal moment, driven by technology and ever-evolving consumer needs. With the Pan-India expansion of Ola Food and the launch of Dash in Bengaluru, on ONDC, we’re offering a faster, more affordable, and seamless food delivery experience. This expansion reflects our commitment to democratising commerce, leveraging ONDC’s open network to make quality services accessible to all.”, Bhavish Aggarwal, Chairman & Managing Director of Ola Consumer said while commenting on the latest development.

Swiggy launches SNACC, a new 15-minute food delivery app

February 23, 2025

Jeff Prescott

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After Zomato, now Swiggy is taking the “bite” out of wait times with the launch of its new app, SNACC. The app promises quick snacks, beverages, and meals delivered in 10 to 15 minutes, and is currently available in select neighbourhoods of Bengaluru. Going forward, SNACC will be expanded to other cities in the near future.

“Introducing SNACC by Swiggy: Your Go-To for Quick Bites, Beverages and Home-Style Meals Delivered in 15 Minutes! Craving comforting home-style food or a quick snack? Swiggy SNACC brings a delightful array of freshly prepared dishes and beverages straight to your doorstep in just 15 minutes,” reads the app’s description on the Play Store.

This development comes on the heels of Zomato launching a similar venture and making a comeback into the domestic instant food delivery market (allowing users to place quick orders from nearby restaurants within a radius of 2 km). Recent years have seen a steady growth of the demand for fast food delivery services, particularly in urban centres like Bengaluru, where consumers are increasingly looking for convenience in their dining experiences. This shift is largely driven by millennials and Gen Z, who have grown accustomed to the immediacy that modern technology provides, including in the food sector.

This is where the new standalone app comes in, and SNACC is set to offer a menu that includes breakfast items, light meals, snacks, and beverages, all delivered within a short window of time. Partnerships with popular brands like Blue Tokai and The Whole Truth are featured alongside unbranded offerings sourced from third-party food providers, and the app caters to the needs of consumers who have little time to wait for food but still want access to high-quality, hassle-free meals. With the app, users will have access to all the quick-bite options, enabling them to skip the time-consuming process of browsing through extensive menus, before making their choice and placing their orders. Users in the available regions can download the SNACC app from the Google Play Store and Apple App Store.

The launch of SNACC marks a departure from Swiggy’s established business model and “one-size-fits-all” approach, in which all of its services—including food delivery, quick commerce, hyperlocal delivery, and dining-out options—were integrated into the same app. This has made navigating Swiggy quite complex and time-consuming, and the launch of separate apps can cut down on time spent browsing the overall app. It also mirrors moves made by rivals like Zepto and Blinkit, which have developed standalone apps for their rapid food delivery services, Zepto Cafe and Blinkit Bistro, respectively. Similarly, Ola has entered the fray with Ola Dash, a service offering food delivery in 10 minutes in Bengaluru, with plans for a nationwide rollout. In addition to these players, Swiggy is also up against other emerging names like Magicpin, which recently launched magicNOW, a service offering 15-minute deliveries across six major cities.

Ola Food Expansion Plan

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