Zomato-Blinkit Merger Approved by SEBI, Creates India's Largest Quick Commerce Entity

The Securities and Exchange Board of India (SEBI) on Wednesday approved the merger of Blinkit (formerly Grofers) into its parent company Zomato, creating India's largest quick-commerce entity. The merged entity, which will continue to operate under the Zomato brand, will have a combined market capitalization of approximately Rs 2.5 lakh crore and serve over 120 million active users.

Merger Details

Under the approved scheme, Blinkit will be fully absorbed into Zomato's balance sheet, simplifying the corporate structure and eliminating inter-company transactions. The merger will result in an estimated annual cost saving of Rs 800 crore from operational synergies, shared warehousing, and unified logistics networks.

Zomato plans to leverage Blinkit's 800+ dark stores across 30 cities for food delivery as well, enabling the company to promise 10-minute delivery for both groceries and restaurant food in select areas. The integrated platform will offer a single app experience for food ordering, grocery delivery, and restaurant discovery.

"Quick commerce is no longer a niche — it's becoming the primary mode of shopping for urban India. This merger allows us to build the most efficient last-mile delivery network in the country," said Zomato CEO Deepinder Goyal in an investor call.

The merger comes amid intense competition in the quick-commerce space from Swiggy Instamart, BigBasket (Tata), and Flipkart Minutes. Analysts note that consolidation was inevitable given the capital-intensive nature of the business. Zomato shares rose 4.2% following the SEBI approval, reflecting investor confidence in the combined entity's growth prospects.