BENGALURU - India's Zomato Ltd said on Friday it will buy local grocery-delivery startup Blinkit for 44.47 billion rupees ($568.16 million) in an all-stock deal as the food-delivery firm looks to take advantage of the booming quick delivery market.

Zomato in August bought a more than 9% stake in Blinkit for nearly 5.18 billion rupees ($66.16 million) and said earlier this year it would invest as much as $400 million in the Indian quick commerce market over the next two years.

Formerly known as Grofers, SoftBank Group-backed Blinkit rebranded itself late last year as its chief promised to speed up deliveries of everything from groceries to electronics in a burgeoning market dominated by Walmart's Flipkart and Amazon's local unit.

Blinkit operates in over 20 Indian cities, delivering products ranging from milk, eggs, fruits and vegetables to electronics. As of January, the startup had an annual run rate of gross merchandise value at about $450 million, according to Zomato.

Zomato, backed by China's Ant Group, did not divulge details on the size of the latest stake.

It said it would also buy the warehousing and ancillary services business from Blinkit's parent company Grofers International for up to 607 million rupees.

($1 = 78.2700 Indian rupees)

(Reporting by Rama Venkat in Bengaluru; Editing by Shinjini Ganguli)