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Blinkit Fires 1,600 Employees In A Blink Midst Cash Crunch

As per industry speculators, Zomato would help Blinkit come out of cash crunch scenario in the midst of rising competition in an already crowded market space.

Blinkit Fires 1,600 Employees In A Blink Midst Cash Crunch

Blinkit, which is an India based quick commerce firm, has allegedly laid off 5% of its total staff, which numbers to 1,600. Blinkit now has 2,000 employees on its payroll with 30,000 ground staff as reported by MoneyControl which has received the information from reliable sources. 

Zomato, the food delivering behemoth, might give a loan in-between $75 million to $100 million to Blinkit. It would help the struggling company out as it grapples with a crunch in cash in the midst of rising competition in an already crowded market environment. Zomato may even go ahead and buy out Blinkit, as some industry speculators say.

The loan which looks possible would materialize after Blinkit’s announcement that it plans to set up 550 dark stores by the year-end. Blinkit, according to sources, spent $78.6 million from November through to February of 2021 in acquiring new customers. 

In order to buy out Blinkit, Zomato will require the approval from Competition Commission of India. Blinkit, in the meantime, is also deep in talks with venture debt firms in order to raise funds. Of late it has signed on the term sheet with Innoven Capital in order to raise debts to the tune of $10 million. 

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