Zomato vs. Swiggy: How the Blinkit merger adds a fresh chapter to an already-heated conflict
The escalating corporate competition between online food-delivery services Zomato and Swiggy has gained a new chapter. The new twist comes after Zomato and Blinkit completed an all-stock merger. According to a Reuters storey, Blinkit, formerly known as Grofers, will be valued between $700 million and $750 million following the acquisition.
DEAL WITH ZOMATO-BLINKIT
Zomato announced in a statement that it will lend Blinkit up to $150 million for its short-term capital needs.
Zomato paid almost $68 million in August for a nearly 9% share in SoftBank-backed Blinkit.
Zomato announced earlier this year that it would invest up to $400 million in India's rapid commerce business over the following two years.
SWIGGY VS ZOMATO
- During the Covid-19 outbreak, there was a surge in demand for food and grocery delivery in India. Zomato and Swiggy are pursuing India's burgeoning rapid commerce segment. The rapid commerce industry is seen as the next big thing in the foodtech sector by both of these online delivery companies.
- In a developing industry dominated by Walmart's Flipkart and Amazon's local unit, Blinkit renamed itself late last year with its CEO promising to speed up deliveries of everything from groceries to electronics.
- Blinkit, an instant-delivery business with over 20 sites across India, promises delivery in 10 minutes, a significant reduction from the hours or days most competitors take.
- Swiggy stated in December of last year that it would invest $700 million in Instamart, its grocery delivery service, to bolster its position in a fiercely competitive domestic market.
- Instamart, Swiggy's supermarket delivery business, has begun to compete with Blinkit and Zepto.
- Zomato is backed by China's Ant Group, while Swiggy is backed by SoftBank Group Corp., a Japanese multinational business.
Swiggy had begun preparations to seek at least $800 million in an IPO early next year, according to Reuters in February 2022.