Zomato parent firm Eternal incorporates food services arm, Blinkit Foods

Eternal, parent company of Zomato and Blinkit, has announced plans to establish Blinkit Foods Limited as a wholly owned subsidiary to focus on food services, including innovation, sourcing, & delivery

Eternal, the parent company of Zomato and Blinkit, plans to incorporate a wholly owned subsidiary, Blinkit Foods Limited, the company said in an exchange filing on Monday. Focused on the food services sector, the company said that Blinkit Foods will be engaged in innovation, preparation, sourcing, sale, and food delivery.

 

"Blinkit Foods is proposed to be incorporated as a wholly owned subsidiary and would, inter alia, engage in the business of providing food services (including innovation, preparation, sourcing, sale, and delivery of food to customers)," the company said in a stock exchange filing.

 

While details remain unclear about the specific focus of Blinkit Foods, it is likely to support Blinkit's quick commerce operations, particularly its 10-minute food delivery service, Bistro. The service, which is being expanded, is currently active in Bengaluru and Delhi-NCR via 38 kitchens. 

 

 

The new entity will be established with a proposed authorised share capital of ₹1 crore, and a proposed paid-up share capital of ₹10 lakh, consisting of ₹1 lakh equity shares with a face value of ₹10 each.

 

According to Deepinder Goyal, the company's co-founder and chief executive officer, preliminary data shows that these kitchens are generating incremental demand without cannibalising the Zomato (the company's food delivery arm) business. He added that through the platform, the company is tapping into two demand pockets, including customers who are looking for high-quality but low-cost meals and those looking for 'snacky' food in 10 minutes.

 

"While customer-side traction is pretty strong, we need to work and find answers to making money in this business. We will therefore continue to make calibrated investments towards building a scalable and profitable business here and will keep you posted when we have more to share," Goyal said in the shareholders' letter as the company also announced its financial results for the first quarter of FY26.