Eternal, a prominent foodtech company, has recently invested ₹450 crore into its quick commerce subsidiary Blinkit through a rights issue. The funding aims to enhance Blinkit’s operations amid the competitive quick commerce market landscape.
The board of Blinkit has approved the issuance of 2,799 equity shares to Eternal at a price of ₹16.07 lakh per share. The investment is anticipated to facilitate Blinkit’s expansion of dark stores, address working capital requirements, and cover operational expenses as it scales its quick commerce services across multiple cities.
The move comes at a time when the quick commerce sector in India is witnessing intense competition, with players like Zepto and Swiggy Instamart making significant investments to bolster their presence. Zepto secured $450 million in funding last year, while Swiggy raised approximately ₹10,000 crore through a qualified institutional placement to amplify its quick commerce arm Instamart.
In its Q3 FY26 report, Eternal described the competition in the quick commerce segment as ‘intense.’ Blinkit’s CEO Albinder Dhindsa highlighted the competitive landscape, citing challenges from startups, major ecommerce platforms, and JioMart, with Amazon and Flipkart also intensifying their quick commerce investments.
Source: Inc42 Media