Zomato’s board has approved the acquisition of Blinkit for ₹4,447 crores. The acquisition has happened at a discounted valuation as compared to Blinkit’s unicorn valuation of $1 billion in 2021. Post the acquisition, the Blinkit team and CEO Albinder Dhindsa will continue to run the company as an independent entity and app.

Zomato CEO Deepinder Goyal said that they will examine ways in which Blinkit can profit from Zomato’s large customer base and vice-versa in the long term. After the deal closure, they are going to begin testing various ideas that they have and will see which bears fruit, including having the Blinkit tab on the Zomato app. Talking about the deal, Goyal said that quick commerce has been Zomato’s stated strategic priority for the last year. They want to concentrate on quick commerce as a natural extension of the food delivery business. Quick commerce will enable them to increase the customer wallet share spent on the platform and also drive higher frequency and engagement from the customers. Adding to this, Zomato CFO Akshant Goyal stated that quick commerce increases the addressable market, and the potential profit pool and also makes the business more secure. The peak demand times for food delivery are also complementary to the quick commerce demand peaks in non-meal times. This will assist to increase the hyperlocal delivery fleet utilization and reduce the cost of delivery. The closing of the transaction is expected to occur in early August. The transaction is subject to shareholders and stock exchange approval.

The food delivery major saw its net loss widen to ₹359 crores in Q4 FY22 against ₹134 crores in Q4 FY21. Consolidated revenue from operations increased from ₹692 crore to ₹1,212 crores. Adjusted EBIDTA loss was decreased by 15 percent to ₹220 crores in Q4FY22 and adjusted revenue rose 8 percent QoQ to ₹1,540 crores.