When it comes to ordering groceries, one of the most prominent names that comes to mind is Blinkit (formerly known as Grofers). This e-commerce company has played a significant role in simplifying our lives by offering a wide variety of daily goods.
Blinkit, backed by Softbank, is an online grocery delivery unicorn that has gained immense popularity. It prides itself on delivering groceries in the blink of an eye, living up to its motto. The company has recently undergone a rebranding to Blinkit to align with its commitment to fast and efficient delivery.
In an exciting development, Blinkit has been acquired by Zomato, a leading foodtech unicorn. The acquisition was finalised in a deal worth $569 million (Rs 4,447 crore) on June 24, 2022. This strategic move strengthens Zomato’s position in the online grocery delivery segment and expands its offerings to customers.
With Blinkit’s acquisition by Zomato, the company is poised to leverage the expertise and resources of the foodtech giant to enhance its operations and reach a wider customer base. The rebranding and acquisition further solidify Blinkit’s position as a key player in the online grocery delivery industry.
As we continue to embrace the digital age, Blinkit and similar platforms have revolutionised the way we shop for daily goods and groceries.
Grofers – Company Highlights
|Sector||Online Shopping/Ecommerce/Grocery Delivery|
|Founders||Saurabh Kumar, Albinder Dhindsa|
|Valuation||$1.01 billion (September 2021)|
|Revenue/Turnover||$345 mn (Rs 2725 crores in FY21)|
|Total Funding||$1 billion (March 2022)|
|Parent Organization||Grofers International Pvt Ltd|
|Website||blinkit.in / grofers.com|
Blinkit (Formerly Grofers) – Simplifying Online Grocery Delivery
Founded in 2013, Blinkit (formerly known as Grofers) is an on-demand online grocery delivery service based in Gurugram, India. This e-commerce startup platform offers a wide range of daily necessities such as groceries, bakery items, and baby care products to its customers.
Through the Blinkit mobile application, customers can conveniently purchase and schedule the delivery of their desired products. Grofers employees ensure the efficient and timely delivery of these items. Currently, Blinkit operates in over 28 cities across India.
Achieving 10-Minute Deliveries
In June 2021, Grofers (now Blinkit) announced its revamped delivery service, promising deliveries within 10 minutes of placing an order online. The online grocery marketplace aimed to fulfil this promise within 45 days in cities where it operated. However, this ambitious commitment faced criticism from people who accused the company of potentially exploiting its workforce to meet such demanding timelines.
Explaining the mechanism behind the 10-minute delivery, Albinder Dhindsa, one of the founders, highlighted the presence of partner stores within a 2 km radius of customers. With more than 60 partner stores in Delhi and over 30 partner stores in Gurgaon, along with a significant number in other cities like Mumbai, Kolkata, and Bengaluru, Blinkit strategically positions its partner stores for efficient deliveries.
Dhindsa further emphasised that the stores’ close proximity allows Blinkit to deliver 90% of orders within 15 minutes, even if the drivers maintain a speed of 10 km/hr. Leveraging advanced technologies, the company ensures orders are packed within 3 minutes of receiving them. Additionally, Blinkit’s riders are not pressured to deliver orders hastily, allowing them to work at their own pace and rhythm. Dhindsa also shared that there have been no reported rider accidents during the last two months of implementing the 10-minute grocery delivery process.
Acquisition by Zomato
After extensive discussions and negotiations, Blinkit was acquired by Zomato, a popular foodtech company led by Deepinder Goyal. The Blinkit acquisition was approved by Zomato’s board on June 24, 2022, in an all-stock deal worth $568 million. The acquisition involved the purchase of equity shares from Blink Commerce Pvt Ltd shareholders, amounting to Rs 4,447.48 crore ($569 million). Blinkit’s earlier valuation of $1 billion underwent a 43% reduction. As part of the deal, Zomato Hyperpure, the B2B arm of Zomato, acquired BlinkIt’s B2B business, Hands on Trade Private Limited (HOTPL), including warehousing and ancillary services, for Rs 60.7 crore.
Founders and Team
Blinkit (formerly Grofers) was founded by Albinder Dhindsa and Saurabh Kumar, both graduates of the Indian Institute of Technology (IIT). The dedicated team behind Blinkit has played a pivotal role in the company’s success and its mission to simplify online grocery delivery for customers.
The Success Story Of Grofers, Now Known As Blinkit
After realizing the gap in the delivery industry and the potential for a startup, Albinder Dhindsa and Saurabh Kumar embarked on their entrepreneurial journey. Albinder had previously worked as a transportation analyst at URS Company in the USA, and it was during this time that he connected with Saurabh Kumar.
Recognizing the untapped opportunity in the hyperlocal space and the need to organize transactions between merchants and consumers, they decided to establish their own startup. Their vision was to create a comprehensive solution for local delivery needs, offering on-demand pickup and drop services. Their focus was on facilitating logistics for various local businesses such as grocery stores, medical stores, and restaurants.
In the early stages, Albinder and Saurabh personally facilitated grocery deliveries for customers from neighborhood stores and supermarkets. This hands-on experience allowed them to understand the intricacies of the delivery process and refine their business model accordingly.
With their combined expertise and a shared passion for transforming the delivery industry, Albinder and Saurabh laid the foundation for what would become Grofers, later rebranded as Blinkit. Their aim was to bridge the gap between consumers and local businesses, providing a seamless and convenient delivery experience for customers.
Through their dedication and innovative approach, they were able to establish Grofers/Blinkit as a prominent player in the online grocery delivery sector, addressing the growing needs of customers and redefining the way daily necessities are acquired.