Zomato is a food-tech startup that plans to invest $48 million in its two subsidiaries. The firm invested $36 million in its e-commerce subsidiary Blinkit and $12 million in Zomato Entertainment. The investment will help Zomato compete with Swiggy and Zepto. Zomato Entertainment is another subsidiary of Zomato that focuses on live events, ticketing businesses, and other entertainment. Here, we are talking about Zomato to invest $48 million in Blinkit and Zomato entertainment.
Here, we are talking about Zomato to invest $48 million in Blinkit and Zomato entertainment:
The board at the startup has passed a special resolution to issue $36 million in the e-commerce startup Blinkit and $12 million in Zomato Entertainment. After this round, Zomato remains the largest investor in Blinkit, with a $277 million investment in the startup since its inception. The company previously bought an all-stock deal of Blinkit for $568 million. Blinkit was once in crisis and was acquired by Zomato, but now it is gaining domination in the e-commerce sector. This new investment came after Zepto reported the fresh funding round and Flipkart announced its e-commerce business. Zomato’s close competitor, Swiggy, is also going public this year.
After Zomato acquired Blinkit, the company’s improved performance and advanced platform made its valuation reach the $13 billion mark. Goldman Sachs analysts mentioned this six-times increase in its valuation after the acquisition from $2 billion in March 2023 to $13 billion. Fresh capital allocation came after Zomato reported that Blinkit had a 19.4% increase in EBITDA profitability for the fourth quarter to Rs 769 crore. Zomato reported its overall net profit to be around Rs 175 crore this quarter.
Analysts mentioned Blinkit to have more worth than Zomato. The founder of Zomato, Sanjeev Bikhchandani, also noted that Blinkit has a very high potential and will be significant in upcoming years. The company will remain focused on advancing its network to support future growth, meeting market demands, improving customer engagement, and purchasing orders. The competition in the e-commerce sector is getting fierce, and Zomato is trying to solidify its position through these investments.
Conclusion
A food-tech startup, Zomato invested around $48 million in its e-commerce subsidiary Blinkit and entertainment arm, Zomato Entertainment. The startup’s board passed a special resolution to issue $36 million in Blinkit and $12 million in Zomato Entertainment. After this round, Zomato remains the largest investor in Blinkit, with a $277 million investment in the startup since its inception. The company previously bought an all-stock deal of Blinkit for $568 million. Analysts mentioned Blinkit to have more worth than Zomato.
The company had improved performance and an advanced platform that made the valuation of Blinkit reach the $13 billion mark. The startup invested $36 million in its e-commerce subsidiary Blinkit and $12 million in Zomato Entertainment. The firm plans to use this fund to launch new services while scaling up and expanding its operations nationwide. The startup plans to enhance its technology and aim for a more extensive customer base. Blinkit was once in crisis and was acquired by Zomato, but now it is gaining domination in the e-commerce sector. This new investment came after Zepto reported the fresh funding round and Flipkart announced its e-commerce business.
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