Food delivery giant Zomato is likely to double down on its investments in quick-commerce start-up, Blinkit (formerly Grofers), with sources saying that the announcement is likely to be made in the second half of February. Sources say that this could be potentially a $500 million deal valuing Blinkit at $1.5 billion valuation, a significant jump from it's existaing $1 billion valuation. This comes at a time when Zomato founder and CEO, Deepinder Goyal has sold his stake in Blinkit to Tiger Global.
Zomato last year infused $100 million in Blinkit, valuing it at $1 billion. Japanese investment giant, SoftBank is the largest stakeholder in Blinkit with nearly 45 per cent stake whereas Tiger Global’s stake is more than 10 per cent, worth over $100 million.
“The fresh funds infusion by Zomato is likely to involve a secondary share sale by SoftBank,” one of the sources privy to the development said.
The deal, touted as one of the biggest in the quick commerce segment till now, will provide more ammunition to Blinkit to take on rivals such as Zepto, BigBasket, and Reliance-backed Dunzo, among others.
Zomato and Blinkit have declined to comment on the developments when Business Today reached out to the companies.
Sources pointed out that Deepinder Goyal’s exit from Blinkit is definitely a signal that another major investment in the grocery delivery start-up is on the way.
Royal, besides leading food delivery major Zomato to a sucessful public listing, has also made a series of investments across multiple start-ups in his own personal capacity. Goyal had last year taken an exit from logistics tech firm Shiprocket, post which Zomato led a $120 million funding infusion in the start-up.
In response to a query posed by former Infosys Director and Chairman, Mohandas Pai on Twitter about whether Goyal’s personal stake in start-ups where Zomato invests creates a "conflict of interest”, the Zomato CEO had categorically denied the accusation, and had said that no such conflict of interest exists.
“This personal investment was one of the key reasons we got closer to Shiprocket (and its founders). That’s how we discovered that there was potential long-term strategic fit between the two companies… Also, such things (personal investments followed by Zomato stepping in) might continue to happen by design, while we continue to ensure the highest levels of disclosure and corporate governance at Zomato,” Goyal had said.
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