🥕 Zomato’s Hyperpure and Blinkit Are On To a ‘Fresh’ Start

Quick commerce startup, Blinkit has pulled down the shutters of its warehouses again.

The last time it halted its business and closed many dark stores was back in March.

To keep its 10-minute delivery promise (and live up to its name), it opened new stores — not to forget the stiff competition it faced at that time from rival Zepto.

Then came food delivery giant, Zomato to acquire the unicorn q-commerce for $570 million in an all-stock deal.

Because, of course, Zomato’s got to catch up with Swiggy and a rush of other younger startups in the space.

What better way to diversify beyond the core food-delivery business?

So, this time, Blinkit has decided to shut down most of its own backend fulfillment warehouses and merge them with Zomato’s Hyperpure.

New Winds, Old Friends

Hyperpure sources pesticide-free veggies and antibiotic-free meat to supply to restaurants.

They can buy everything from vegetables, fruits, poultry, groceries, meats, and seafood to dairy and beverages directly from farmers, mills, and producers.

As a matter of fact, Hyperpure isn’t a newbie.

Launched in April 2019 amid much fanfare, the initiative has not been able to move fast and break things in restaurant grocery supply.

Initially, the platform saw a huge uptick after the first wave of the pandemic.

Around 7,500 restaurants in May 2020 opted for the service compared to 2,256 in March that year.

But that phase of hypergrowth plateaued during the second wave in 2021

On the brighter side, Zomato’s investors are betting on Hyperpure’s 10x growth in the next two-three years despite these headwinds.

It had even earmarked Rs.55 Cr for the mega warehouses to be set up at different locations.

These plans went haywire, though, when the black swan event came along.

A number of Blinkit employees are being transferred to Zomato Hyperpure. Layoffs are likely, as in any M&A deal.

Delivering Synergies

The joint entity can not only bring down the procurement costs but also share resources like backend fleet and manpower.

Blinkit currently procures fruits and vegetables from Hyperpure and has plans to also add perishables items like bread and dairy products to the list.

Packaged foods and groceries will continue to be procured by Blinkit separately as they fall outside of Hyperpure’s categories.

Too long? Here’s a one-liner: Blinkit will integrate with Zomato’s Hyperpure — a business-to-business grocery supply model; backend fulfilment warehouses might shut and merge with Zomato’s.

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