Together with

Salutations, Olio aficionados! 👋

Happy Hump Day and welcome to the 67th edition of Weekly Olio - your trusty source for giggles, wisdom, and a dash of intrigue courtesy of our tantalizing thought piece (yes, buckle up for Publisher's Parmesan). 🧀

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The Quote󠀢 💭

The Tweet 🐦

Continuing from our last week’s thread that covered an introduction to art, this week, we have a thread from The Cultural Tutor that explores the work of Salvador Dali - one of the modern greats in the world of art. Dali was a surrealist artist known for his precise draftsmanship, technical skill and striking images in his works. Great way to get introduced to the work of a master.

The Infographic 💹

Despite democracy being the most prominent form of government in modern times, quite a few countries continue to have active monarchies. Amongst royalty, the wealthiest, by a long mile, is the King of Thailand. Surprising isn’t it?

The Short Read 📝

The rise of techno-authoritarianism - by Adrienne LaFrance

Adrienne LaFrance is the executive editor of The Atlantic. Before joining The Atlantic in 2014, LaFrance was an investigative reporter for several local and national news organizations, covering politics, technology, and media.

The article discusses the rise of a new political ideology in Silicon Valley, which the author calls “techno-authoritarianism”. The article argues that this ideology is characterized by a belief in the power of technology to solve social problems, and a willingness to use that power to suppress dissent and control public discourse. The article explores how this ideology is being promoted and implemented by tech companies, and the potential implications of this trend for democracy and freedom of speech.

The Long Read 📜

The Ghost in the Gulfstream - by Rich Cohen

Rich Cohen is an American non-fiction writer. He is a contributing editor at Vanity Fair and Rolling Stone. He is co-creator, with Martin Scorsese, Mick Jagger and Terence Winter, of the HBO series Vinyl.

The article discusses the challenges faced by ghostwriters while working on the memoirs of billionaire financier Theodore “Teddy” Forstmann. The author describes how Forstmann was a difficult client who was initially enthusiastic about the project but later became increasingly uncooperative. The article also explores the broader issues of ghostwriting and the ethics of writing someone else’s story.

Publisher’s Parmesan 🧀

How Zomato turned Blinkit from a failing Startup to a thriving business

Zomato, one of India's leading food delivery platforms, has been making headlines for its ambitious expansion into the grocery delivery segment. The company acquired Blinkit, formerly known as Grofers, in June 2022 for $568 million in an all-stock deal. Blinkit is a 10-minute grocery delivery service that operates in over 40 cities across India.

But Blinkit was not always a success story. In fact, it was a struggling startup that faced multiple challenges and pivots before finding its niche in the quick commerce space. In this essay, we will explore how Zomato transformed Blinkit from a downbeat venture to a thriving business that is giving tough competition to its rivals.

Blinkit started its journey as Grofers, an online grocery marketplace that connected customers with local kirana stores. Founded in 2013 by Albinder Dhindsa and Saurabh Kumar, Grofers raised over $700 million from investors like SoftBank, Tiger Global, and Sequoia Capital. It expanded rapidly to over 300 cities and claimed to have over 10 million customers.

However, Grofers soon faced several roadblocks that hampered its growth and profitability. The company faced regulatory hurdles, operational inefficiencies, customer complaints, and intense competition from players like BigBasket, Amazon, and Flipkart. Grofers also had to deal with the impact of the COVID-19 pandemic, which disrupted its supply chain and demand patterns.

As a result, Grofers saw its valuation drop from $800 million in 2018 to $300 million in 2020. It also had to lay off hundreds of employees, shut down many of its warehouses, and scale back its operations in several cities. The company was losing money and market share and was finding it hard to raise funds from new or existing investors.

The Pivot to Blinkit

In 2021, Grofers decided to pivot its business model and rebrand itself as Blinkit. The company shifted its focus from being a marketplace to a full-stack delivery platform. It started to build its own network of dark stores, which are small warehouses that stock a limited range of products and cater to nearby customers. Blinkit also reduced its delivery time from 90 minutes to 10 minutes and promised to offer the lowest prices in the market.

The idea behind Blinkit was to tap into the growing demand for convenience and speed among urban consumers, who wanted to order groceries and other essentials online without waiting for long or paying extra. Blinkit also aimed to differentiate itself from its competitors by offering a curated selection of products, ranging from fresh fruits and vegetables to snacks and beverages.

Blinkit's pivot seemed to pay off, as the company claimed to have grown its revenue by 10 times and its customer base by 4 times in 2021. It also said that it had achieved positive unit economics and was on track to become profitable by 2022. Blinkit also expanded its presence to over 40 cities and planned to launch in 100 more by the end of 2022.

The Acquisition by Zomato

Zomato, which had been eyeing the grocery delivery space for a long time, saw an opportunity in Blinkit. The food delivery giant had tried to enter the segment twice before, in 2020 and 2021, but failed to gain traction. It faced challenges such as low margins, high logistics costs, and complex inventory management. Zomato also faced stiff competition from Swiggy, its archrival, which had launched its own 10-minute grocery delivery service called Instamart in 2020.

Zomato decided to acquire Blinkit in June 2022, in a deal that valued the latter at $568 million. Zomato said the acquisition would help diversify its revenue streams, leverage its existing customer base and delivery network, and create synergies with its core food delivery business. Zomato also said it believed in the potential of quick commerce, which was growing rapidly both in India and globally.

The acquisition was seen as a win-win situation for both Zomato and Blinkit. Zomato gained access to a fast-growing and profitable segment, while Blinkit got a lifeline from a cash-rich and well-established player. The deal also marked a significant turnaround for Blinkit, which had seen its valuation plummet in the previous years.

The Future of Blinkit and Zomato

Since the acquisition, Blinkit has continued to grow and innovate under Zomato's umbrella. The company has added new categories such as beauty, wellness, and pet care to its portfolio. It has also launched new features such as live tracking, voice search, and personalized recommendations. Blinkit has also partnered with local brands and manufacturers to offer exclusive products and deals to its customers.

Blinkit has also emerged as a strong contender in the quick commerce space, giving a tough fight to its rivals such as Swiggy's Instamart, Dunzo, and Zepto. According to a recent report by RedSeer, Blinkit had a 35% market share in the 10-minute grocery delivery segment in India in 2023, followed by Instamart with 30%, Dunzo with 20%, and Zepto with 15%. The report also estimated that the segment would grow to $12 billion by 2025, accounting for 15% of the online grocery market in India.

Zomato, on the other hand, has also benefited from the acquisition of Blinkit. The company has reported a 40% increase in its revenue and a 20% reduction in its losses in 2023, compared to 2022. Zomato has also improved its customer retention and loyalty, as well as its cross-selling and upselling opportunities. Zomato has also said that it expects Blinkit to contribute 25% of its revenue by 2025.

Zomato and Blinkit have thus proven to be a successful combination, as they have leveraged their strengths and synergies to create a dominant position in the food and grocery delivery space. The two companies have also shown how a strategic acquisition can turn a failing startup into a thriving business, and how a pivot can change the fortunes of a company. Zomato and Blinkit have set an example for other players in the industry, who are looking to innovate and grow in the post-pandemic era.

Olio Jobs 💼

• JPMorgan Chase & Co. | New York - Venture Investing and Advisory Associate

• University of the Arts London | London - Product Manager

• Datasite | US Remote - Sr. Technical Product Manager

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We’ll be back in your inbox 2 PM IST next Wednesday. Till then, have a productive week!

Peeyush and Mohit

Disclaimer: The views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author's employer, organization, committee or other group or individual.