Blinkit Steals the Spotlight
Back in 2008, Deepinder Goyal got fed up with wasting his lunch breaks in long lines. So, he thought, “Why not put restaurant menus online?” And just like that, Foodiebay (which later became Zomato) was born.
With a love for food and a mission to solve a simple problem, Zomato grew fast. By 2011, Infoedge noticed and gave them their first big investment, kicking off a wild ride of 18 funding rounds and a whopping $1.69 billion raised. Zomato had big dreams and the whole world was on its plate.
Zomato’s ipo and the profit struggle
In 2021, Zomato went public, making history as India’s first big food delivery company on the stock market. The IPO raised $1.26 billion to fuel growth and improve services. But the road wasn’t smooth; food delivery is a tough game with tight margins and fierce competition, so profits were always a bit of a struggle.
When quick commerce was still a baby
In 2013, while Zomato was breaking boundaries in food delivery, another idea was taking shape on the grocery side. Inspired by a local pharmacy hustling to get orders out within a tiny area, Grofers (now Blinkit) was born.
Founders saw something exciting in rapid grocery delivery: the idea that every second matters. The concept quickly gained momentum, and Blinkit became synonymous with the kind of speed we didn’t know we needed in our grocery runs.
Betting on blinkit
In 2022, Zomato made a bold move, buying Blinkit for $570 million in an all-stock deal. This wasn’t just a purchase – it was a partnership aimed at leading India’s quick delivery game.
Blinkit didn’t disappoint. In FY 23-24, it handled over 203 million orders, grew its order volume by 71% year-over-year, and hit an impressive 10,000 crore in Gross Order Value (GOV). Blinkit’s growth was blazing through the competitive quick-delivery space.
Zomato’s first full-year profit
Zomato finally hit profit in Q4 FY24, with ₹175 crore, a turnaround from a ₹188 crore loss last year. Revenue shot up to ₹3,582 crore from ₹2,058 crore. For the entire year, Zomato reported a solid ₹351 crore profit, a big jump from the previous year’s ₹971 crore loss, thanks to stronger operations and revenue growth.
Blinkit also doubled its revenue to ₹769 crore in the same quarter and hit profitability on an adjusted EBITDA basis by March – a huge step up financially.
Blinkit by the numbers
Blinkit’s growth is hard to miss:
- 18.4 million average monthly users in FY 23-24 – a loyal crowd that keeps growing.
- A crazy 93% boost in Gross Order Value, with orders hitting 203 million for the year.
This explosive growth turned heads. By April 2024, Goldman Sachs valued Blinkit at a jaw-dropping $13 billion – more than Zomato’s food delivery business! Zomato’s stock soared, proving that betting on Blinkit was really a game-changer.
With Zomato’s experience in logistics and these two have become a dream team. Blinkit uses a network of “dark stores” – small warehouses that keep deliveries fast and efficient. This unique setup means they’re reaching more people, faster, and expanding beyond big cities to small towns across India.
Blinkit’s big plans
Blinkit has no plans of slowing down. By 2026, they’re looking to expand their dark stores from 639 to over 2,000 locations, reaching into every corner of India. With this ambition, Blinkit is set to become a household name and the backbone of Zomato’s broader vision. The dynamic between Zomato and Blinkit isn’t just about groceries or food delivery; it’s about becoming a one-stop platform for anything you need, delivered with the speed of a click (quite literally).
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