Zomato’s Ambitious Expansion Plans for Blinkit

Zomato, a major player in the foodtech industry, is considering a significant expansion of its quick commerce vertical, Blinkit.

This move is aimed at broadening Blinkit’s offerings by adding more brands across new categories, positioning Zomato to compete with established ecommerce giants like Amazon and Flipkart.

D2C Push with Built-In Supply Chain

The expansion into the direct-to-consumer (D2C) space will involve Zomato building its own supply chain to directly source branded products and manage stock for Blinkit. However, Zomato does not intend to own inventory directly but rather manage the flow of products for D2C brands, streamlining the logistics process.

Strategic Initiatives and Potential Acquisitions

Zomato has reportedly explored opportunities to acquire and merge with Shiprocket, an ecommerce enablement firm that works with numerous D2C brands. While discussions with Shiprocket are ongoing, Zomato has already leased warehouses in New Delhi and Mumbai to support Blinkit’s ecommerce endeavors.

Favorable Financial Performance

Despite Blinkit’s aggressive expansion plans, the quick commerce vertical has demonstrated robust financial performance. In Q3 FY24, Blinkit recorded a substantial increase in revenue to INR 644 crore, accompanied by an improved adjusted EBITDA loss. The growth in revenue and operational metrics underscores Blinkit’s growing presence and market traction.

Zomato’s Overall Performance

Zomato, as a whole, reported its third consecutive profitable quarter, reflecting the company’s overall financial health and operational efficiency. The significant growth in operating revenue and consolidated net profit signifies Zomato’s resilience and success in navigating the competitive foodtech landscape.