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Zomato is gearing up to enter the direct-to-consumer (D2C) space with its 10-minute delivery platform, Blinkit. The expansion involves adding brands across diverse categories, potentially competing with ecommerce giants like Amazon and Flipkart. Zomato plans to build its own supply chain to source branded products directly and ensure efficient stock management for swift delivery through Blinkit.

Zomato, in its expansion of quick commerce operations, has engaged in discussions with individual brand owners across categories to enhance inventory. This strategic move is viewed as a potential driver for long-term growth, according to insiders.

Zomato is strategically considering expanding its operations by managing the product flow for Direct-to-Consumer (D2C) brands, a move reminiscent of marketplaces. This strategic shift involves overseeing the product journey without direct inventory ownership, aligning with evolving industry trends. As part of this expansion, Zomato explored acquiring Shiprocket, an ecommerce enablement firm, to enhance its supply chain control. Despite holding a 6.6% stake in Shiprocket, Zomato's acquisition attempts were unsuccessful. Concurrently, Zomato has leased warehouses in New Delhi and Mumbai, signaling a commitment to supporting Blinkit's ecommerce endeavors.

This move underscores Zomato's efforts to diversify beyond its traditional food delivery segment and gain more influence over the supply chain, potentially positioning itself as a comprehensive solution provider for D2C brands. As discussions persist and Zomato seeks to navigate the evolving landscape of ecommerce and logistics, the company remains focused on adapting to changing market dynamics and capitalizing on emerging opportunities in the digital commerce space.

India’s two largest food delivery firms, Zomato and Swiggy, have been looking to diversify. Last year, Swiggy rolled out its ecommerce marketplace Minis, which focuses on local delivery of brands across sectors with zero marketplace fees. People said Zomato hopes to use hyperlocal warehouses and faster delivery timelines to its advantage and, through Blinkit, take on incumbents such as Walmart-owned Flipkart and Amazon. For Blinkit, adding newer categories, especially in the D2C sp .. 

India's prominent food delivery platforms, Zomato and Swiggy, are actively pursuing diversification strategies to navigate the dynamic market landscape. Swiggy initiated this shift with the introduction of its ecommerce marketplace, Minis, which focuses on facilitating local deliveries for brands across various sectors without charging marketplace fees. In parallel, Zomato is strategically leveraging hyperlocal warehouses and expeditious delivery services through its subsidiary, Blinkit.

This strategic move positions Zomato to compete more directly with major ecommerce players such as Flipkart and Amazon, marking a significant expansion beyond its core food delivery segment. In the context of Blinkit, the subsidiary's foray into new categories, particularly within the Direct-to-Consumer (D2C) space, is a deliberate effort to bolster its average order value (AOV). The AOV is a critical metric that not only contributes to the company's revenue growth but also aids in minimizing losses. This is evident in the recent performance of Blinkit, where the AOV reached Rs 635 in the December quarter, showcasing growth from Rs 553 in the previous year and Rs 607 in the September quarter.


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