Indian food distribution company Zomato Ltd has partnered with Blinkit, an online shopping platform that values immediate delivery service between $ 700 million and $ 750 million, TechCrunch reported on Tuesday, citing a source familiar with the matter.
Zomato and Blinkit did not immediately respond to Reuters’ requests for comment.
The food distribution company acquired a more than 9 per cent stake in Blinkit, backed by SoftBank, in August for Rs 5,180 billion ($ 67.77 million).
Formerly known as Grofers, Blinkit changed its mind at the end of last year as its CEO promised to speed up shipments from food to electronics in a growing market dominated by Walmart’s Flipkart and Amazon’s local units.
A startup operating in more than 20 locations across India offers the convenience of delivery in 10 minutes, much less than the hours or days that most competitors take.
Zomato said in his latest earnings report that he would spend $ 400 million on potential investments in the fast-paced market over the next two years.
($ 1 = 76.4380 Indian rupee)
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