Blinkit, previously Grofers, has closed an extra $100 million financing as part of its ongoing fundraise. The funds are being raised via convertible notes from Zomato, which is able to later be transformed into equity.
This is part of a bigger $400-million funding Blinkit is trying to raise from Zomato and different traders, which is anticipated to shut in the subsequent two quarters. Last month, Zomato was looking to invest $400 Mn in the quick commerce category.
Zomato said that with $1.7 billion cash in the bank, it will look to capitalize on the growth seen by Blinkit in the past year as quick commerce took centre stage. Blinkit has an on-ground workforce of 30,000 and has opened 450 new warehouses and darkish shops to scale its fast commerce plans.
After Zomato’s $100 Mn investment in Grofers in August 2021, the company rebranded to Blinkit. In August, Blinkit pivoted to Q-commerce, promising delivery within 10 minutes.
In an internal note to Blinkit employees, Albinder Dhindsa, Co-Founder at Blinkit, wrote that the company will focus on growth and on increasing its speed of execution, while also reducing its burn rate as much as possible.
The note read, “We have closed our next fundraise ($100 million) and will have money coming into the bank over the next week. We have come a long way in the last eight months by transitioning the business to the largest instant commerce player in the space.”
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