Zomato Hyperpure Acquires Blinkit’s HOTPL Warehousing, Ancillary Services Business

Zomato Hyperpure, the B2B restaurant supply part of the food delivery giant, has completed its acquisition of Hands On Trades Public Limited (HOTPL), the warehouse and ancillary services division of grocery delivery firm Blinkit.

Earlier this year, Zomato also acquired Blinkit in an all-stock deal, according to a report from Economic Times of India (ET) Thursday (Aug. 11). The HOTPL sale went ahead for around $8 million in cash, though Zomato did not purchase its B2B trading business.

Zomato reportedly now plans to integrate Blinkit on numerous fronts, including customers and delivery fleets, and it plans to look into moving Blinkit to the Zomato app. According to a previous report, Blinkit may be shutting down a lot of its back-end fulfillment warehouses, instead merging them with Hyperpure.

Zomato bought around 10% of Blinkit in August of last year, saying earlier this year it planned to invest $400 million in the Indian quick commerce space in the next two years.

Read more: Zomato Buying Grocery Delivery Startup Blinkit for $568M

The purchase of Blinkit shows the company was willing to go way higher than that — Zomato bought Blinkit for Rs 4,447 crore (about $567 million) which will reportedly help it expand as competition heats up in the space. The India quick commerce sector was worth $300 million last year and is likely to grow to $5 billion by 2025.

Last year, Grofers was rebranded as Blinkit, and management said the company intended to work on quick delivery of groceries, electronics and other things. Zomato said at the time that it planned to buy the warehousing and ancillary services business from Grofers.

All of that came as Zomato co-founder and CEO Deepinder Goyal said he wasn’t sure how well the super app model would fare in India in the future.

There’s some demand for a super app in the U.S., with PYMNTS’ December “The Connected Consumer In The Digital Economy: How US Consumers Define the Super App” study finding that 67% of U.S. consumers said they want to integrate numerous areas of their digital lives into just one app. Additionally, 11% of consumers said they would want one single place to manage every part of their digital lives.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.