Blinkit, a quick commerce company that was formerly Grofers, has announced that it is raising up to $100 million in funding earliest by the coming week as part of a bigger $400 million fundraise, according to close sources of the company. With the mission of ‘instant commerce indistinguishable from magic, Blinkit uses data services, technology and customers insights for the network that it builds with the partner stores, enabling the deliveries of the orders to be completed within 10 minutes.
The company is one of the largest e-grocery companies in India, with an aim to become 100x the size in the next five years. The company has stated that the company needs a team of builders who can think on their feet and are committed to making outcomes happen, in order to fulfil the objective of making the company one of the most crucial e-retail companies of the time. Blinkit is also hiring people to expand the team of the company, for which they are looking for people who are smart and ambitious.
Blinkit is one of the largest e-grocery companies in India, that aims to become 100x the size in the next five years.
According to the sources, the company has been in talks with the investors for the round for quite a long time now due to the public market conditions. The business is delivering over a million orders every week right now, with the business doing considerably well. The fundraising is expected to include a debt financing by Zomato, which is a food delivery company, for an equity round. Both Blinkit and Zomato have declined to comment on the matter as of now.
Zomato and Blinkit have been in discussions and has made a commitment to invest an amount of $400 to 500 million in the company and half of it is pending. The previous month, the food delivery company mentioned that it has made investments in the companies across the past year including Shiprocket, Magicpin and Blinkit (formerly Grofers. The company has stated that it will continue to invest in other food companies and quick commerce, and the higher bound of the company’s potential investments over the next two years is $400 million.
Zomato had invested $100 million in the last year (which is nearly Rs 745 crore), to acquire a minority stake of more than 9 per cent in Grofers, which later on changed the brand as Blinkit, as it transferred to being a quick commerce company.
Albinder Dhindsa is the CEO of Blinkit company that was formerly known as Grofers.
After the rebranding of the company in the month of December, Albinder Dhindsa of Blinkit has said that the company has a healthy business even with the existing cash flows of the company, and thus they don’t need to raise more funds and capital. Blinkit started the journey with ten-minute deliveries four months ago and are out in the market with 248 stores.
The company has scaled up around $450 million GMV (Gross merchandise value) run rate and now it is operating more than 400 dark stores in 20 cities of the nation. All the grocery delivery companies of the business are now stepping into quick commerce format, with a minimum of 12-minute delivery.