Image Source: Business Outreach
Radhakishan Damani, the iconic founder of DMart and one of India’s most respected business magnates, has quietly acquired approximately a 0.5% stake in Eternal, the parent company of food delivery giant Zomato and hyperlocal quick commerce platform Blinkit. This calculated minority ownership, valued at around ₹1,200 crore, has sent ripples through India’s retail and investment communities, signaling a clear endorsement of the fast-growing instant delivery sector and hinting at intriguing strategic possibilities for the country’s evolving retail ecosystem.
Key Highlights: The Investment Details
Damani holds roughly 0.39% of Eternal’s shares directly, while his wife, Shrikantadevi Damani, owns about 0.10%, combining to approximately 0.5% of the company.
Eternal, formerly known as Zomato Ltd., commands a market capitalization of around Rs 3 lakh crore (~$36 billion), driven significantly by Blinkit’s rapid growth.
Damani’s purchase comes through public market transactions rather than insider deals, signifying calculated confidence based on market dynamics and sector potential.
Significance and Market Impact
This move marks an intriguing shift from Damani’s traditional dominance in offline retail through DMart toward embracing the digital-first quick commerce model.
Blinkit’s hyperlocal delivery network, famed for 10-15 minute grocery deliveries via dark stores, contrasts DMart’s “Dmart Ready” service where delivery times range from several hours to a day, highlighting different strategies serving evolving consumer preferences.
Damani’s stake acquisition lends substantial validation to Eternal’s business model and growth trajectory, encouraging other investors and market watchers to reassess Blinkit’s potential.
Following the announcement, Eternal’s share price surged to an all-time high, with analysts like Goldman Sachs raising price targets and brokerage houses upgrading their outlook on DMart as well.
Strategic Implications and Potential Industry Dynamics
Damani’s involvement may foreshadow a future of collaborations or competition between DMart’s expanding retail ecosystem and Blinkit’s quick commerce ambit.
By holding shares in a company considered a major disruptor to traditional retail, Damani hedges his bets, gaining exposure to digital consumer trends while retaining offline retail strengths.
The investment spotlights the growing intersection between brick-and-mortar and digital commerce where omni-channel integration becomes a competitive differentiator.
Risks and Industry Challenges
Quick commerce remains capital-intensive with substantial logistics, infrastructure, and marketing expenses; profitability depends heavily on scale, efficiency, and cost discipline.
Market valuations of companies like Eternal are high, with Price-to-Earnings (PE) ratios soaring due to anticipated future growth; execution risks remain if expansion slows or competition intensifies.
Regulatory and operational challenges, such as delivery personnel management and urban logistics constraints, require careful navigation.
Outlook: The Future of Indian Retail and Delivery
Damani’s stake accelerates the narrative that quick commerce is a legitimate, mainstream retail format set to shape India’s consumption patterns.
As digital penetration deepens and consumers’ expectations shift towards faster convenience, investments like Damani’s signify mainstreaming of this segment.
The coming years are likely to witness tighter synergies among retail chains, quick delivery platforms, and technology providers in creating seamless consumer experiences.
Conclusion
Radhakishan Damani’s move to acquire a minority stake in Eternal, parent company of Blinkit and Zomato, is far more than a financial transaction. It represents a strategic signal of confidence in quick commerce—a rapidly expanding frontier blending technology, logistics, and retail innovation. This investment underscores the transformative shift within India's retail industry and serves as a bellwether for prospective partnerships, competition, and growth opportunities in the evolving consumer market.
Sources: OfficeChai, Voice.Lapaas, YourStory, Indian Tycoons, Financial Express
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