Blog Content
History of Blinkit
Blinkit, founded in 2013, allowed customers to order groceries and essentials online through a mobile application. By November 2021, the company was processing 1.25 lakh orders daily and had expanded its operations to over 30 cities across India.
After seven years as an online grocery delivery service, Blinkit pioneered express grocery delivery in India by establishing dark stores in multiple cities. In July 2021, the company successfully delivered over 7,000 grocery orders within 15 minutes in Gurgaon. The following month, in August 2021, Blinkit launched 10-minute deliveries in the top 12 cities, having already completed more than 20,000 under-15-minute deliveries per day across 10 cities. On December 13, 2021, Grofers officially rebranded as Blinkit.
Why had Blinkit shut down some of its dark stores?
Blinkit faced a cash crunch, which led to the closure of 50 dark stores across the country. As a result, hundreds of employees, including dark store managers, pickers, and delivery workers, lost their jobs. This move was part of the company's efforts to cut costs and reduce its burn rate.
Additionally, Blinkit delayed vendor payments for at least a couple of months. To address financial challenges, the company raised debt capital from Zomato and had the potential to secure an additional $300 million from the food-tech giant. Zomato had previously invested $100 million in Blinkit, acquiring a 10% stake, following which the company rebranded from Grofers to Blinkit, shifting its focus to 10-minute deliveries. At the time, Blinkit stated that it was shutting down stores that were not equipped to meet the 10-minute delivery model.
Long-awaited acquisition:
Zomato, the food delivery giant, has officially announced its acquisition of grocery delivery startup Blinkit, a deal that had been in progress for several months. In a blog post confirming the acquisition, Zomato’s founder and CEO, Deepinder Goyal, emphasized that quick commerce has been a strategic priority for the company over the past year. He highlighted the strong synergies between quick commerce and Zomato’s core food business, which are expected to drive long-term success.
While Zomato has already established itself in online food delivery, the company now aims to expand into the quick commerce segment as a natural extension of its services. Blinkit is being acquired as part of this strategy, with Zomato finalizing the deal for $569 million on June 24, 2022.
