InvestorQ : How is Zomato doing on its quick commerce purchase of Grofers?
Aashna Tripathi made post

How is Zomato doing on its quick commerce purchase of Grofers?

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Aditi Sharma answered.
2 months ago
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A recent statement by the CFO of Zomato makes for some interesting reading. According to the CFO of Zomato, the competitive intensity had reduced substantially in the quick commerce space. This was after funding had dried up and most of the existing quick commerce players were struggling to maintain delivery schedules in the Indian context, without the liberal taps of funding formerly made available to them.

Zomato has funded Blinkit, and leverages on Blinkit (formerly Grofers) platform to fulfil promises of rapid delivery of groceries in less than 20 minutes. In terms of financial performance, losses of Zomato had nearly widened 3-fold to Rs360 crore for the March 2022 quarter. It is true that most recently launched quick commerce companies were facing pressure of timely delivery amidst a funds crunch. Zomato has $1.6 billion cash, but it is now going slow on cash burn to ensure that it is well funded when funding markets are tight.
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