Blink, a Karachi-based quick commerce platform headquartered in Saudi Arabia, has raised $2.1 million in seed funding from SOSV, 500 Global, and Global Founders Capital.
Make me care: The rise of food delivery aggregators like Foodpanda and Cheetay has been a double-edged sword for restaurants.
While they offer essential access to customers who prefer to eat at home, they also charge hefty commission fees (15-30% of the meal price), significantly impacting restaurant profitability and customer relationships.
This is where Blink comes in.
With Blink, restaurants can manage direct online orders and delivery to reduce reliance on aggregators. This reduces commission costs and maintains stronger, more profitable relationships with customers.
Tell me more: Blink’s journey is a tale of business transformation.
Originally Eat Mubarak, a food aggregator, Blink soon realized the food aggregator model needed more sustainability. Embracing change, it pivoted to a more robust and sustainable business model.
It developed a comprehensive platform, enabling restaurants and retailers to independently manage orders, payments, and deliveries. This pivot was more than a service change; it was a strategic move to empower businesses.
By using Blink’s platform, restaurants can directly reach customers, bypassing costly aggregators. Not only did this cut expenses, but it also increased profits, addressing the crucial issue of losing revenue to aggregators.
By the numbers: In the press release issued, Blink claims the following:
- Orders Processed (12 Months): 4.5 million
- Annual Recurring Revenue: Surpassed $0.5 million
- Restaurant Partners: Over 1,200 across the MENAP region
- Direct Orders Processed for Restaurants: 8+ million
- Profitability Increase for Restaurants via Blink: Up to 30%
You should know: Blink was founded by Syed Sair Alia and Syed Hyder Abbas in 2020.
In its previous life, when Blink was known as Eat Mubarak, it raised around $500k from SOSV (MOX Accelerator). This new round brings its total funding to $2.6 million.
Zoom out: Blink’s story exemplifies the importance of adaptability and innovation in business, showcasing how a strategic pivot can lead to sustainable success.
The fresh round of funding is aimed at bolstering their presence in Saudi Arabia, a key market in the GCC. The move is aligned with its vision to offer restaurants, which are losing margins to delivery aggregators, a more profitable and data-driven alternative.