Eternal sets up Blinkit Foods unit amid rapid growth in quick commerce arm
Eternal’s move to set up Blinkit Foods signals plans to expand its food services push, following a sharp rise in Blinkit's GOV, revenue, and users.
Consumertech player Eternal has incorporated a subsidiary, Blinkit Foods, with a proposed authorised share capital of Rs 1 crore.
According to exchange filings, Blinkit Foods is expected to engage in the business of providing food services, including innovation, preparation, sourcing, sale and food delivery to customers.
While its plans haven't been exactly detailed, the subsidiary is likely to work closely with its quick food delivery app, Bistro by Blinkit.
"Early data is encouraging as the kitchens are generating incremental demand without cannibalising the
Zomato business. Through Bistro, we are tapping into two demand pockets so far unaddressed by Zomato: customers looking for high-quality but low-cost meals (think customers who buy from home chefs), and customers looking for snacky food in 10 mins," Eternal CEO Deepinder Goyal said in a shareholder letter.
Bistro by Blinkit was launched in December last year in Delhi-NCR. Since then, the service has expanded to multiple pin codes in Bengaluru and other cities.
The app competes with other 10-minute food delivery apps such as Zepto Cafe and Swiggy Snacc, along with offerings like Swiggy Bolt and M-now by Magicpin.
These developments come at a time when Blinkit is outpacing food delivery in terms of GOV and revenue.
Blinkit—which now contributes over 30% of Eternal's consolidated revenue—more than doubled its gross order value (GOV). The segment saw its revenue more than double to Rs 2,400 crore from Rs 942 crore in the corresponding quarter last year. Zomato, the company’s core food delivery business, clocked a sluggish 10% sequential growth in GOV, as well as a 16% annual growth to Rs 10,769 crore. Its adjusted revenue for the quarter rose to Rs 2,657 crore, up from Rs 2,256 crore in Q1 FY25.
Blinkit also doubled its monthly transacting users from 7.6 million to 16.9 million.
In a separate exchange filing, the company announced that its board’s Nomination and Remuneration Committee approved the grant of 1,013,597 stock options under its 2021 employee stock option plan.
Each option is exercisable into one equity share at an exercise price of Rs 1 per share.
Based on Eternal’s closing share price of Rs 276 on Monday, the grant stands at about Rs 27.76 crore.
Edited by Jyoti Narayan