🚴 Blinkit expands rapidly
Blinkit, Zomato’s quick-commerce business, plans 2,000 dark stores in India by FY25, one year earlier than expected. By December 2024, it operated over 1,000 stores, surpassing its forecast. The last two quarters saw 368 new stores and 1.3M sq. ft. of space. But this rapid scaling led to $11.9M in Q3 losses as competition mounts.
🔥 Competition heats up
India’s quick-commerce market is in "land grab mode," per JPMorgan. Zepto, Blinkit's rival, is also rapidly expanding its dark store network after raising $1B in 2024. Flipkart launched its service in 2024 with 100+ stores, and Amazon piloted its offering last month. Swiggy's quick-commerce IPO in 2024 underscores how intense the race has become.
📈 Changing market dynamics
Quick-commerce services promise deliveries in 10–15 minutes, reshaping consumer behavior. Growth reached 120% for Blinkit in Q3, outpacing Zomato’s core food business at 17%. Companies are heavily investing in store rentals, discounts, and customer loyalty to gain traction. This is squeezing margins but boosting customer awareness and adoption.
📊 Future prospects
Blinkit’s CFO, Akshant Goyal, forecasts growth above 100% through FY25 and FY26, despite short-term losses. Loyal customers drove one-third of Blinkit’s December gross order value. Albinder Dhindsa, Blinkit’s CEO, said competition benefits customer adoption but challenges profitability. Blinkit hopes scaling will eventually deliver strong returns.
Can Blinkit sustain its growth despite mounting losses?
