The deal was long anticipated — the companies were in talk since 2021.
Earlier this year, Zomato announced up to $150 m loan to Blinkit and in 2021 acquired 10% in the company as Pre-IPO deal. Blinkit turned into unicorn following this round.
Bkinkit raised a total of $1 bn, including about $250 m as debt. 15 investors include Tiger Global management, Sequoia Capital, Softvision, Abu-Dhabi Capital, etc.
This notable deal reflects the situation in the sector — ultra-fast delivery business model not being able to result in profit. With people coming back to shops, raising food inflation and capital deficit many players may limit the operations or be acquired.
We may see migration of the ultra-fast delivery model to not so ultra and drastically reduced customer acquisitions costs – no more repeatable $10 vouchers.
Overall, it may turn the industry that has its niche in a more healthy business to be loved by investors again.