Zomato Bets Big on Blinkit with Fresh ₹1,500 Crore Investment Amid Quick Commerce War
In a bold move to cement its dominance in India’s booming quick commerce space, Zomato has pumped in a massive ₹1,500 crore into its quick commerce arm Blinkit. The development comes amid aggressive competition and rapid expansion in the fast-delivery segment, as both Zomato and Swiggy intensify their bets on the future of hyperlocal commerce.
According to filings with the Registrar of Companies (RoC), Zomato has acquired 7,612 shares at an issue price of ₹19,70,171 per share, taking its total new investment in Blinkit to ₹1,500 crore.
Swiggy Fires Back with ₹2,600 Cr Total Commitment
Not one to be left behind, Swiggy has also ramped up its investments in quick commerce. The company recently committed an additional ₹1,000 crore to its subsidiary Scootsy Logistics, on top of a ₹1,600 crore infusion announced in December 2024 via a rights issue.
In its latest exchange filing, Swiggy noted that it acquired shares in Scootsy at ₹7,640 apiece, with the funding expected to close in one or more tranches.
This signals an intensifying arms race between India’s two biggest food-tech giants—Zomato and Swiggy—to dominate the quick commerce battlefield through funding firepower and supply chain scale.
Quick Commerce: The Hottest Battleground in Indian Tech
Both Zomato and Swiggy are doubling down on store penetration, logistics infrastructure, and geographic expansion to claim larger slices of India’s time-sensitive shopping market.
These mega investments come at a time when the quick commerce space is heating up with new entrants:
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Amazon has quietly launched pilot operations for Amazon Now in Bengaluru, aiming to tap into the sub-30-minute delivery market.
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Flipkart is scaling its own offering Flipkart Minutes, which promises lightning-fast delivery of daily essentials.
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Zepto, the youngest unicorn in the segment, recently relocated its corporate headquarters outside India as it reportedly gears up for a $1 billion IPO.
Clearly, the quick commerce market in India is moving at a breakneck pace, with major players willing to burn cash today for long-term market capture.
Zomato’s Fundraising and Financial Strategy
Zomato’s recent investment in Blinkit follows its major fundraise in November 2024, when the company raised $1 billion through a qualified institutional placement (QIP). The raise marked Zomato’s first major funding round since its IPO in 2021 and saw strong participation from domestic mutual funds.
The new capital is being strategically directed towards Blinkit’s expansion plans, including increasing dark store density, improving last-mile delivery networks, and integrating more high-margin categories such as electronics and premium grocery.
Stock Market Impact and Outlook
While both Swiggy and Zomato saw their stock prices take a hit after Q3 earnings, market sentiment has shown signs of rebound:
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Zomato stock is trading at ₹226, up 1.49% on the NSE.
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Swiggy stock is trading lower by 2.1%, currently priced at ₹369.
Combined, the two stocks have shed more than $11 billion in market value since their Q3 earnings releases, indicating investor caution amid rising losses and mounting capital expenditure in the quick commerce space.
Blinkit: Zomato’s Growth Engine
Zomato is betting big on Blinkit as its next growth engine. Once seen as a side hustle, Blinkit is fast becoming central to Zomato’s future roadmap. The platform has already expanded to more than 500 dark stores across 25+ cities, delivering everything from groceries and fresh produce to iPhones and Apple accessories within 10–15 minutes.
As Blinkit continues to push the limits of ultra-fast delivery, Zomato’s ongoing capital support is expected to:
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Increase order fulfillment capacity
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Enhance delivery reliability and frequency
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Boost average order value (AOV) by diversifying product categories
Final Take: The Quick Commerce Era is Here
The battle lines have been drawn. With Zomato pouring ₹1,500 crore into Blinkit and Swiggy committing ₹2,600 crore into Scootsy, India’s quick commerce war has officially entered its high-stakes phase.
As more players join the race, only those who can balance speed, scale, and sustainability will thrive. Zomato’s latest investment shows it is not just participating—it’s playing to win.
Stay tuned with IndyaStory for more insights on India’s evolving startup ecosystem, unicorn moves, and quick commerce disruption.
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