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Zomato Q2: Blinkit is under margin pressure due to store expansion

  • Zomato's quick commerce business, Blinkit, is facing margin pressure due to its rapid store expansion.
  • Blinkit had 791 stores at the end of Q2, compared to 411 in the same period last year.
  • The company is making investments to scale its infrastructure, including new stores and warehouses.
  • While most stores are profitable, the aggregate level margin expansion is not seen due to short-term dilution caused by expansion efforts.

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