Blinkit Has Laid Off Employees And Delayed Some Vendor Payments
Food delivery platform Zomato may extend a $75-$100 million loan to rescue cash-strapped quick commerce startup Blinkit, persons familiar with the development said. The lifeline comes at a time when the startup has laid off employees, shuttered dark stores, and delayed some vendor payments, amid intense competition in the quick commerce space.
Most of the layoffs by Blinkit have happened in cities like Mumbai, Hyderabad and Kolkata across segments such as riders, pickers and store managers. The company currently has over 2,000 people on its payroll and 30,000 ground staff. This layoff is likely to have impacted close to 5 percent of the overall strength.
According to the sources, Blinkit, which spent Rs 600 crore between November and February to expand the business and acquire customers in the cash-guzzling and deep-discounted grocery delivery space, is now looking to cut costs and has reduced its cash burn.
"Earlier the payment used to happen in 30 days of raising the invoice. Now that is being delayed to 45-50 days," claims sources of a reliable media house.
