Business
Did Zomato buy Blinkit to offset its losses from online food delivery?

Online food delivery platform Zomato, which saw its stock tumbling below its IPO price as India reopened and retail food industry came back on track, had acquired quick-commerce grocery delivery platform Blinkit for a whopping Rs 4,447 crore (about $568 million). Will this acquisition change its future prospects?
Zomato already owned more than 9 per cent stake in Blinkit (earlier Grofers). While the earlier Blinkit deal was valued around $700 million, the drop in Zomato’s share price reduced it to $568 million.
Zomato’s stock is hovering around Rs 70, after sliding to nearly Rs 50 (it opened at Rs 76 during its mega IPO last year).
According to market experts, Zomato is facing severe cash flow problems as its operational cost is running quite high.
Zomato Founder and CEO Deepinder Goyal said on Friday that he is not getting into the quick commerce market because growth in food delivery is now saturating.
“Food delivery has a long runway ahead. In FY22, our Adjusted Revenue grew by 109 per cent over FY21 and we expect healthy growth to continue going forward,” he noted.
According to him, quick commerce is a natural extension of Zomato’s food delivery business.
“How is it a natural extension? Because it is also a hyperlocal business, just like food delivery. And, because it also caters to a need for quick delivery of products for our customers. Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customers,” he said in a company statement.
Zomato has grown at a CAGR of 86 per cent in the last four years to an adjusted revenue of $710 million “while the adjusted EBITDA margin has improved from (153 per cent) in FY19 to (18 per cent) in FY22”.
The acquisition came as the quick commerce (10-minute delivery) segment is brewing with new hope as people prefer groceries and other home essentials at their doorsteps within no time after making an online order.
Startups like Swiggy Instamart, Zepto and Reliance-backed Dunzo, among others, are trying to defy the current slowdown, as they add more goods and daily essentials to their kitty and deliver them to their customers.
In December 2021, Swiggy announced to pour $700 million into Instamart.
Last month, 10-minute delivery platform Zepto raised $200 million, taking its valuation to around $900 million.
India’s quick commerce market is all set to witness 15 times growth by 2025, reaching a market size of nearly $5.5 billion, according to Bengaluru-based market research firm RedSeer.
The total addressable market for quick commerce in India stands at $45 billion, and urban areas are driving this market on the back of mid-high-income households.
According to Akshant Goyal, Chief Financial Officer, Zomato, their food business is trending towards profitability faster than what they hadAthought at the time of the IPO last year.
“The timeframe for overall Zomato profitability does not change in our minds. In fact, we believe we will now get to profitability within the same timelines (as we thought last year) but with a much larger addressable market. We are also not envisaging any furtherAcapital raise to get to profitability in this timeframe,” he said.
Goyal said that as a food company, “we are already tapping into the large food delivery opportunity in India”.
“Customers (and data) are clearly signalling the macro trend that people are moving to unplanned and spontaneous purchases. To add to this, monthly order frequency on Blinkit app was 3.5x in May 2022, which is higher than that of food delivery on Zomato,” informed Goyal.
Blinkit’s gross order value (GOV) is fast catching up with Zomato’s GOV in some key markets, therefore indicating that quick commerce will add a significant new addressable market to our business in the long term.
“In a sample market like Gurugram, Blinkit GOV is already 63 per cent of Zomato’s food delivery GOV,” Goyal added.
Quick commerce naturally extends across multiple categories including beauty and personal care, electronics, OTC pharma, stationery and other gift items, among others.
The company said it will keep the Blinkit app and brand separate from Zomato.
“We will explore ways in which Blinkit can benefit from Zomato’s large customer base (and vice versa in the long term). Post the deal closure, we are going to start experimenting with various ideas that we have and see which all bear fruit, including having the Blinkit tab on the Zomato app,” the company said.
Business
ICEA launches industry-wide initiative to foster tech and AI innovation

New Delhi, June 3: The India Cellular and Electronics Association (ICEA) on Tuesday announced a unique industry-wide initiative to collaboratively foster tech and AI innovation for the benefit of India’s manufacturing sector.
The programme will connect companies with transformative innovations across domains such as advanced manufacturing, AI, IoT, energy efficiency, materials science, and more.
The ICEA launched Venture Access Labs — a technology innovation access programme in collaboration with venture capital fund Caret Capital.
This initiative aims to empower India’s electronics and appliances manufacturing companies by enabling them to discover, curate, and adopt cutting-edge technologies and innovations from across the world.
“Through Venture Access Labs, ICEA is proud to champion and unlock global innovation to strengthen India’s position as a global hub for manufacturing and electronics with a vision to build Indian Champions,” said Pankaj Mohindroo, Chairman, ICEA.
“By opening the door to international technological advancements and building an innovation pipeline, we aim to accelerate India’s electronics manufacturing capabilities and global competitiveness so as to capture a larger global market share,” he added.
The comprehensive programme will cover several functions including procurement, planning, manufacturing, supply chain, finance, HR, legal and ESG.
Through this programme, companies will benefit from innovation trend spotting, curated access to high-impact startups and Ips, strategic matchmaking and pilot opportunities, tailored adoption pathways for new technologies, and facilitated investments in strategically relevant, vetted high-potential startups.
“It is time for the Indian electronics and appliances manufacturing to transit to tech first-led global leadership,” said Salil Kapoor, Co-founder and Chief mentor of Venture Access Labs.
It will be the innovation catalyst and partner, scanning and curating the latest tech and game-changing startups from across the world for Indian manufacturing companies to engage with, at a fraction of the cost if they were to do it on their own,” he mentioned.
National
Calcutta HC refuses ad-interim bail to law student held for hurting religious sentiments, seeks case diary

Kolkata, June 3: The Calcutta High Court on Tuesday denied ad-interim bail to Sharmistha Panoli, the 22-year-old law student arrested recently by Kolkata Police on charges of hurting religious sentiments and promoting disharmony and hatred.
As her counsel approached the High Court, challenging the trial court’s order last week sending her to judicial custody till June 13, the matter came up for hearing before the vacation bench of Justice Partha Sarathi Chatterjee.
However, Justice Chatterjee denied any relief to Panoli, observing that the freedom of speech in the country does not allow anyone to hurt anyone’s religious sentiment.
An FIR was registered against Panoli at Garden Reach Police Station on May 15 for posting an Instagram video, where she made some comments on ‘Operation Sindoor’ that had reportedly hurt the religious sentiments of a particular community.
In the face of strong criticism, she deleted that video and also tendered a public apology for the matter. However, based on the FIR registered, the police first sent her a notice, which failed since she had gone into hiding in Gurugram by then.
Thereafter, an arrest warrant was issued against her, and finally, she was arrested from Gurugram by Kolkata Police on Saturday morning and was brought back to Kolkata on transit remand on the same day.
Rejecting the ad-interim bail, Justice Chatterjee observed that the video posted on social media had reportedly hurt the religious sentiments of a section of people. “We have freedom of speech, but that doesn’t mean you will go on to hurt others. Our country is diverse, with all people. We must be cautious,” he said.
He directed the police to submit the case diary in the matter by the next date of hearing on June 5.
The vacation bench also directed the state government to ensure that police do not pursue any other complaint filed against Panoli in any other police station. It also directed the police not to register any fresh complaints in the same matter.
National
Bodies of three workers recovered from flooded illegal coal mine in Jharkhand’s Hazaribagh

Hazaribagh, June 3: Thirteen days after they were trapped, the bodies of three workers have been recovered from an illegal coal mine in Keredari block of Jharkhand’s Hazaribagh district, officials said on Tuesday.
The deceased, whose bodies were recovered late on Monday night, have been identified as Pramod Shah, 45, Umesh Kumar, 25, and Naushad Ansari, 24 — all residents of Kandaber village under the Keredari police station area.
The three men were reportedly swept into the mine on May 21, when heavy rainfall caused the Khawa River to swell.
Villagers said the strong current pushed the workers into one of the numerous illegal tunnels that dot the region, many of which are controlled by coal mafias and continue to operate despite the risks involved.
The mine shaft where they were trapped was more than 100 feet deep and quickly flooded, making rescue efforts extremely challenging.
The National Disaster Response Force (NDRF) conducted a three-day operation to locate and retrieve the bodies but had to suspend efforts due to waterlogging.
Subsequently, the task of dewatering the mine was taken up by NTPC and a private company. After days of continuous pumping, the water level finally receded, which enabled local villagers to recover the bodies late on Monday night.
On Tuesday morning, police sent the bodies for autopsy to Sheikh Bhikhari Medical College and Hospital in Hazaribagh. After the post-mortem, the bodies were brought back to Kandaber and cremated on Tuesday afternoon.
The incident plunged the village into mourning, with relatives and neighbours breaking down as the news spread.
There were scenes of chaos and wailing as the bodies were brought into the village.
Following the recovery, villagers renewed calls for compensation and the provision of government jobs for one dependent of each deceased worker.
Despite repeated incidents, illegal mining continues unabated in the Khawa river belt of Keredari, drawing hundreds of locals desperate for work and vulnerable to exploitation.
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