Blinkit, the quick commerce platform, experienced a remarkable three-fold increase in its operating revenue during fiscal year 2023, following its acquisition by Zomato in a $568 million all-stock deal in the early stages of FY23. The acquisition, initially perceived as a lifeline for the struggling business, appears to have revitalized the company.
In FY23, Blinkit reported an operating revenue of Rs 724.2 crore, a substantial jump from the Rs 236.1 crore it generated in FY22, as per the standalone financial statements filed with the Registrar of Companies. Marketplace commissions accounted for a significant portion of its revenue, contributing to 55.9% of the total operating collection. This income surged to Rs 404.5 crore in the last fiscal year, a 2.75-fold increase from Rs 146.8 crore in FY22. Additional income was generated through advertising solutions displayed on its mobile app, which, along with revenue from delivery and supporting services, drove its total operating revenue to Rs 724.2 crore in FY23.
In terms of expenses, delivery, and related charges represented 29.2% of the total expenses, increasing 2.4-fold to Rs 565.8 crore in FY23 from Rs 235.9 crore in FY22. Overall expenditure, including employee costs, advertising, rental, and outsourcing manpower expenses, reached Rs 1,939 crore in FY23.
Despite the substantial growth in revenue, losses only increased by 8.2% to Rs 1,078.9 crore in FY23 from Rs 996.7 crore in FY22, excluding the cost of loss of valuation of share warrant and CCPS due to their non-cash nature. Blinkit’s ROCE and EBITDA margins stood at -213.59% and -119.79% respectively in FY23.
Exciting news! We’re now on WhatsApp Channels too. Subscribe today by clicking the link and stay updated with the latest insights in the startup ecosystem! Click here!
While there is still a significant gap to bridge between revenues and losses, Zomato’s management has expressed confidence in the Blinkit acquisition delivering value to shareholders. This implies a potential two-year wait for a turnaround, even as Zomato seeks consistent profitability in its standalone operations.
Zomato will have ample opportunities to evaluate the Blinkit investment against other possibilities in the coming years.
