Zomato's Blinkit acquisition may delay its road to profitability: Analysts

Quick commerce firm expected to be profitable by FY27 due to intense competition in sector, says one report

Zomato, online grocery company Blinkit in talks for a merger deal

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Zomato expects a meaningful number of Blinkit’s dark stores--used to serve rapid online deliveries--to turn profitable within the next one year.

Nikita Vashisht New Delhi

4 min read Last Updated : Jun 27 2022 | 11:37 PM IST

Zomato could take longer to make profits after it acquires Blinkit for a pricey Rs 4,447-crore amid intense competition in the quick commerce industry, said analysts on Monday.

Concerns about the acquisition pulled down the online food delivery firm’s stock 6.4 per cent to Rs 65.8 apiece on the BSE on Monday. In comparison, the benchmark Sensex settled 0.8 per cent higher.

ALSO READ: Zomato's Rs 4,447-crore acquisition of hyperlocal delivery firm Blinkit

Zomato expects a meaningful number of Blinkit’s dark stores--used to serve rapid online deliveries--to turn profitable within the next one year and make the entire business viable on adjusted Ebitda (earnings before interest, tax, depreciation, and amortisation) levels, in less than three years.