Zomato is a food-tech startup that plans to invest $48 million in its two subsidiaries. The firm invested  $36 million in its e-commerce subsidiary Blinkit and $12 million in Zomato Entertainment. The  investment will help Zomato compete with Swiggy and Zepto. Zomato ent. is another subsidiary under  Zomato that focuses on live events, ticketing businesses, and other entertainment. 

The board at the startup has passed a special resolution to issue $36 million in the e-commerce startup  Blinkit and $12 million in Zomato Entertainment. After this round, Zomato remains the largest investor in Blinkit with a $277 million investment in the startup since its inception. The company previously  bought an all-stock deal of Blinkit for $568 million. Blinkit was once in crisis and was acquired by  Zomato but now it is gaining domination in the e-commerce sector. This new investment came after  Zepto reported the fresh funding round and Flipkart announced its e-commerce business. Zomato’s  close competitor Swiggy is also going public this year. 

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After Zomato acquired Blinkit, the company had improved performance and an advanced platform  that made a valuation of Blinkit reach the $13 billion mark. Goldman Sachs analysts mentioned this 6  times increase in its valuation after the acquisition from $2 billion in March 2023 to $13 billion. Fresh  capital allocation came after Zomato reported that Blinkit had a 19.4% increase in EBITDA profitability for the fourth quarter to Rs 769 crore. Zomato reported its overall net profit to be around Rs 175 crore  for this quarter. 

Analysts mentioned Blinkit to have more worth than Zomato. The founder of Zomato, Sanjeev  Bikhchandani also mentioned that Blinkit has a very high potential and is going to be big in upcoming  years. The company will remain focused on advancing its network to support future growth, meeting  market demands, improving customer engagement, and purchasing orders. The competition is getting  fierce in the e-commerce sector and Zomato is trying to solidify its position through these investments. 

Conclusion: 

A food-tech startup, Zomato invested around $48 million in its e-commerce subsidiary Blinkit and  entertainment arm, Zomato Entertainment. The board at the startup has passed a special resolution  to issue $36 million in the e-commerce startup Blinkit and $12 million in Zomato Entertainment. After  this round, Zomato remains the largest investor in Blinkit with a $277 million investment in the startup  since its inception. The company previously bought an all-stock deal of Blinkit for $568 million. Analysts  mentioned Blinkit to have more worth than Zomato. The company had improved performance and an  advanced platform that made the valuation of Blinkit reach the $13 billion mark. The startup invested $36 million in its e-commerce subsidiary Blinkit and $12 million in Zomato Entertainment. The firm is  planning to use this fund to launch new services while scaling up and expanding its operations across  the country. The startup plans to enhance its technology and aim for a larger customer base. Blinkit  was once in crisis and was acquired by Zomato but now it is gaining domination in the e-commerce 

sector. This new investment came after Zepto reported the fresh funding round and Flipkart announced its e-commerce business.