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Exclusive: Eternal infuses Rs 450 Cr into Blinkit as quick commerce rivalry heats up

EntrackrEntrackr · 6h ago
Exclusive: Eternal infuses Rs 450 Cr into Blinkit as quick commerce rivalry heats up
Medial

Exclusive: Eternal infuses Rs 450 Cr into Blinkit as quick commerce rivalry heats up Foodtech giant Eternal has invested Rs 450 crore (around $50 million) in its quick commerce subsidiary Blinkit through a rights issue. This is the first capital infusion into Blinkit in 2026, after the company received Rs 2,600 crore from Eternal in 2025. The board of Blinkit has passed a resolution to allot 2,799 equity shares to Eternal (formerly Zomato) at an issue price of Rs 16,07,161 per share, raising Rs 450 crore, according to regulatory filings reviewed by Entrackr. The latest infusion follows a series of capital injections by Eternal into Blinkit last year. The parent company invested Rs 500 crore in January 2025, followed by Rs 1,500 crore in February, and Rs 600 crore in November, taking the total investment in 2025 to Rs 2,600 crore. The move also comes amid rising competition in the quick commerce space. Zepto raised $450 million in October last year in a round led by US-based pension fund California Public Employees’ Retirement System (CalPERS). Swiggy’s board also mopped up Rs 10,000 crore through public or private offerings to ramp up its quick commerce play. Queries sent to Blinkit did not elicit a response. Earlier this year, Albinder Dhindsa, the CEO of Blinkit, took charge as Group CEO of Eternal, after Deepinder Goyal stepped down from the role. Financially, Blinkit has remained a leading player in the quick commerce segment. The company reported Rs 12,256 crore in revenue in Q3 FY26 and posted an adjusted EBITDA of Rs 4 crore during the same period. Meanwhile, Swiggy Instamart, in the same quarter, reported a loss of Rs 908 crore with the GOV of Rs 7,938 crore. Zepto also expected to be in loss although it didn’t reveal any numbers beyond FY25. With competition intensifying in quick commerce, companies continue to invest in supply chains, dark store networks, and faster delivery. Discounts have become a key growth driver for Blinkit, Swiggy Instamart, and Zepto. However, Sriharsha Majety recently said Swiggy will not chase discount-seeking customers and will instead focus on better SKUs and a stronger understanding of user needs. The space is gradually shifting from aggressive to sustainable growth. While all three are working toward profitability, Blinkit appears closer to real profit after reporting a marginal adjusted EBITDA profit in the last quarter.

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Zomato invests Rs 500 Cr in Blinkit

EntrackrEntrackr · 1y ago
Zomato invests Rs 500 Cr in Blinkit
Medial

Food tech giant Zomato has invested Rs 500 crore (nearly $60 million) in its quick commerce subsidiary, Blinkit, bringing its total investment in the quick commerce segment to Rs 2,800 crore since the acquisition. The board has Blinkit has passed a resolution to issue 2,537 equity shares at an issue price of Rs 19,70,181 each to raise Rs 500 crore, its regulatory filing accessed from the Registrar of Companies shows. The capital injection into Blinkit comes just two months after Zomato raised Rs 8,500 crore through a Qualified Institutions Placement (QIP). The primary objective of that fundraising was to strengthen Zomato's financial position, enabling business expansion and strategic initiatives, particularly in the quick commerce segment through Blinkit. This marks Zomato's second capital infusion in Blinkit within seven months. In June 2024, it invested Rs 300 crore ($36 million) into the Albinder Dhindsa-led company. Blinkit, formerly known as Grofers, was acquired by the food delivery giant in an all-stock deal valued at Rs 4,477 crore ($568 million).

Eternal eyes 100% inventory play for Blinkit to improve margins

EntrackrEntrackr · 10m ago
Eternal eyes 100% inventory play for Blinkit to improve margins
Medial

Eternal eyes 100% inventory play for Blinkit to improve margins Eternal Limited, the company formerly known as Zomato, is gearing up for a strategic shift in its quick commerce arm, Blinkit, by planning to own inventory directly—a move enabled by its recent transition to an Indian-owned and controlled company (IOCC), according to a shareholder letter released by the company. The move will strengthen its operations and improve margins as it faces increased competition from both established players and new entrants in the quick commerce space. Eternal estimates that adopting a 100% inventory model would require less than Rs 1,000 crore in working capital. This amount is only about 5% of Blinkit's expected Net Order Value (NOV) of Rs 22,000 crore for FY25. In response to a question on how a pure-play inventory model could be achieved with Rs 1,000 crore, Eternal’s CFO Akshant Goyal explained that in quick commerce, inventory moves quickly. As a result, the company expects that working capital investments, relative to the overall scale of the business, will remain relatively low. The plan to keep inventory for BlinkIt comes on the back of its aggressive expansion in Q4 FY25, where it added 294 new stores and over 1 million sq ft of warehouse space, pushing its total store count to 1,301. However, such rapid growth led to widening EBITDA losses for Blinkit, from Rs 103 crore in Q3 to Rs 178 crore in Q4 of the last fiscal year (FY25). Even as short-term losses rise, Eternal remains bullish on the long-term profitability of the quick commerce space. The company is not planning private labels for now, but hinted that inventory control could eventually nudge EBITDA margins beyond the 5-6% of NOV it currently targets.

Exclusive: Flipkart to take on Zepto, Blinkit with quick commerce foray

EntrackrEntrackr · 2y ago
Exclusive: Flipkart to take on Zepto, Blinkit with quick commerce foray
Medial

The quick commerce sector is all set to heat up once again as India’s e-commerce giant is now eyeing the segment. Flipkart has started ramping up infrastructure for its quick commerce play, three sources aware of the details of the plan told Entrackr. “Flipkart will launch 10-15 minutes delivery in at least a dozen cities in the next six to eight weeks,” said one of the sources requesting anonymity. “It’s building up a chain of dark stores across several cities including Bengaluru, Delhi (NCR) and Hyderabad among others.” Flipkart’s foray into quick commerce comes at a time when experts anticipate that quick commerce would end up eating into the e-commerce pie sooner than later in India. The total addressable market for quick commerce in India is nearly worth $45 billion, according to a 2022 Redseer report. More importantly, quick commerce has proven to be surprisingly resilient in the last couple of years, with both Zepto and Zomato’s Blinkit doing more than enough to convince investors that the concept has a future in India. While Zepto was rewarded with a unicorn round, Blinkit’s (formerly Grofers) turnaround and Swiggy Instamart’s growth have been bright spots in terms of scaling up with improving margins for their owners. “If you look at Flipkart’s recent launches, it hints at the firm’s foray into quick commerce. It launched same-day delivery in 20 cities a couple of weeks ago… the company began delivering flowers and cakes around the Valentine season (February 2024),” an analyst covering the e-commerce and quick commerce segments, requesting anonymity, told Entrackr. Sources indicate that Flipkart will have a wider catalog than incumbents such as Zepto and Blinkit. “The company will have a sharp focus on FMCG, grocery and daily essentials but it would also push categories such as electronics, fashion,” added the person quoted above. It’s worth mentioning that the current quick commerce players have also been steadily expanding and diversifying their offerings. Responding to queries sent by Entrackr, a Flipkart spokesperson said they are working towards delivering a wide range of products with speed. “Over the past few months, we have made several investments to enhance our delivery capabilities, including adding same-day delivery in 20 cities. This covers mobiles, essential items, electronics, home appliances, fashion, books and lifestyle products,” said the spokesperson. “We are committed to meeting evolving customer expectations and delivering excellence in value, selection and speed, with more initiatives expected on this front in the coming months.” Over the past three years, quick commerce gained quick ground in top 15 Indian cities and top three players in the segment—Blinkit, Swiggy Instamart and Zepto—managed to gain sizable scale. Sources outlined that BlinkIt does around 6 lakh orders a day while Swiggy InstaMart and Zepto’s daily volume hover around 5 lakh and 3 lakh, respectively. According to Entrackr sources and data available in the public domain, Blinkit has an average revenue run rate of Rs 12,000 crore in the ongoing fiscal year whereas Swiggy Instamart ARR (read as GMV) stands at around Rs 8,000-8,500 crore. Zepto’s gross merchandise value has neared Rs 7,000 crore. Fresh from its last funding round, Zepto has been noticeably feistier — with a larger catalog and stronger marketing push. Meanwhile, Reliance and Google-backed Dunzo lost its mojo. The firm failed to raise a new round in the past two years and reported only Rs 226 crore in revenue in FY23 with losses of Rs 1,801 crore. As per reports, Flipkart engaged in discussion regarding a potential acquisition of the Kabeer Biswas-led firm. While all that might sound good, the fact that no one disagrees is that the market is not big enough for so many players, making this a matter of staying in power for most. Or perhaps, even newer operating models that might ensure sustainable growth. The broad direction so far, of an ever widening catalog and higher value transactions like electronics items etc, indicates the bleeding will not stop anytime soon.

Zepto board approves Rs 11,000 Cr raise ahead of confidential IPO filing

EntrackrEntrackr · 2m ago
Zepto board approves Rs 11,000 Cr raise ahead of confidential IPO filing
Medial

Zepto board approves Rs 11,000 Cr raise ahead of confidential IPO filing Zepto prepares to confidentially file its draft red herring prospectus (DRHP) on December 26. The company has also recently converted into a public limited company. Quick commerce firm Zepto has moved closer to the public markets after its board approved a plan to raise up to Rs 11,000 crore through a fresh equity issue and an offer for sale (OFS) by existing shareholders, as per regulatory filings accessed by Entrackr. The development comes as Zepto prepares to confidentially file its draft red herring prospectus (DRHP) on December 26. The company has also recently converted into a public limited company. Zepto’s regulatory filings show a sharp rise in scale over the past year, alongside a widening of losses. For the financial year ended March 2025, the company reported turnover including other income of Rs 9,668.76 crore, more than doubling from Rs 4,223.91 crore in FY24. The company’s net loss widened to Rs 3,367.28 crore in March 2025 from Rs 1,214.67 crore in FY24. Zepto recently concluded a $450 million fundraise as part of its ongoing capital expansion ahead of the IPO. The company has raised a total of $2.3 billion since its inception, including $1.8 billion since January last year. The Aadit Palicha-led company was valued at $7 billion during the last fundraise. With this move, Zepto is set to become the third quick commerce player to list on Indian stock exchanges, after Eternal and Swiggy, which operate Blinkit and Instamart, respectively.

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