Blinkit promotes long-time exec Rishi Arora to co-founder

Quick commerce startup Blinkit had elevated long-time executive Rishi Arora to co-founder status two months before the startup was acquired by Zomato, ET reported quoting sources.

The announcement of Arora’s appointment was made through internal communication platform Slack, according to the source. Arora has served as senior vice president of operations in the startup for eight years prior to this promotion.

Sajal Gupta, who has been serving as engineering manager in the quick commerce startup since January, has also reportedly been promoted to the role of tech chief.

In a letter to shareholders dated June 24, Zomato had announced the proposed acquisition of Blinkit, originally founded by Albinder Dhindsa and Saurabh Kumar in 2013. While Dhindsa continues to lead Blinkit, Kumar exited in 2021 and started Warpli, another quick commerce startup.

Zomato’s stock price, which has been under pressure in the past few months, shed close to 20 percent on the exchanges after the announcement of the acquisition, with the company’s stock closing at Rs 54.85 on July 8.

The company, which registered a loss of Rs 1,223 crore in the last fiscal year, aims to leverage the synergies between its food-delivery business and Blinkit. A growing quick commerce market, improved efficiency of delivery fleet and customer stickiness were reasons for the acquisition, the company said in the letter to shareholders.

Blinkit, which operates in the competitive quick commerce segment inhabited by Swiggy Instamart, Tata-backed BigBasket and Zepto, is yet to turn in a profit. In May, however, the startup cut down its losses as compared to the beginning of the calendar year.

Zomato’s top executives cited improved operating leverage and better unit economics as reasons for a healthier bottom line. The startup, which became a 100 percent quick commerce business in January 2022, improved its gross order value and revenues to Rs 403 crore and Rs 58 crore respectively, cutting its losses in the process.