Radhakishan Damani, founder and chairman of DMart, has acquired nearly 0.5% stake in Eternal, the parent company of food delivery platform Zomato and quick-commerce firm Blinkit. The acquisition includes 0.39% held personally by Damani and 0.09% by his wife, Shrikantidevi Damani. As one of the top 200 shareholders in Eternal, this move comes as interest in quick commerce and hyperlocal delivery surges in India. OfficeChai
Details of the Stake Acquisition
- Damani now holds approximately 0.39% stake in Eternal, while his wife holds 0.09%, bringing together a combined ~0.5% holding.
- The investment is through direct equity shareholding (public markets / share acquisition) rather than a private deal.
- Eternal is the parent company of Blinkit and Zomato, recently rebranded from Zomato Ltd.
Why It Matters
- Validation of Quick Commerce
Damani’s investment signals confidence in the quick commerce space. With Blinkit under Eternal expanding rapidly, this move suggests that seasoned investors believe in long-term growth potential. - Competitive Landscape Insight
DMart itself has its own delivery or quick commerce service (“Dmart Ready”). By investing in a competitor (or at least a related player in the ecosystem), Damani may be hedging bets, gaining exposure to shifts in consumer behaviour. - Market Sentiment Boost
As someone known for judicious investment and long-term value plays, Damani entering Eternal’s cap table is likely to encourage other investors to take a fresh look at Eternal and its growth trajectory. - Valuation Implications
Eternal has a high valuation, especially given its quick commerce business. Damani’s move could be seen as voting for Eternal’s current valuation and prospects, which may affect market perceptions.
Potential Risks & Things to Watch
- Valuation Stretch: Eternal (Blinkit + Zomato) has been trading at high P/E multiples. Returns will depend heavily on execution, margin improvement, and cost control.
- Competition & Margins: Quick commerce is capital and logistics intensive; scaling efficiently is difficult.
- Regulation and Consumer Trends: Delivery costs, discounts, and sustainability of operations will affect profit margins.
- Overlap with DMart’s Own Strategy: DMart’s own delivery or grocery expansion might compete with Blinkit in same geographies; the long-term outcomes are uncertain.
What This Signals for the Market
- More crossover interest: Retail players/investors will increasingly invest in tech/hyperlocal firms.
- Potential for collaboration or conflicts: If DMart chooses to compete or collaborate with Blinkit/Eternal, this stake could give Damani some voice or influence, though small.
- Speed matters: With quick commerce order growth increasing, the pace at which Eternal can scale Blinkit profitably will be critical.
Conclusion
The acquisition of nearly 0.5% of Eternal by DMart founder Radhakishan Damani is a noteworthy strategic move. It underlines rising investor confidence in quick commerce, reflects competitive awareness from established retail chains, and may serve as a harbinger of further capital influx into firms operating in the “instant delivery” and hyperlocal space. For Eternal, it’s both a stamp of approval and a reminder that performance will need to justify high expectations.
