Blinkit’s growth is becoming a focal point in the dynamic e-commerce landscape. Under Zomato’s ownership, Blinkit has experienced a remarkable upswing, emerging as a key player in the quick-commerce sector.
The question looms: Can Blinkit stand toe-to-toe with the e-commerce giant Flipkart? I mean whether it can compete with other e-commerce giants like Flipkart or Amazon…
For that we need to understand the driving forces behind Blinkit’s growth, shedding light on factors such as its dominance in the quick-commerce market, strategic moves by Zomato, and impressive metrics.
In this write-up, we will delve into the intricacies of Blinkit’s growth & evolution to assess its potential for competition in this ever-evolving marketplace.
Stay tuned!
(A) Synopsis of Blinkit’s Growth
Let’s dive into the journey of Blinkit, formerly Grofers, and understand what’s propelling its growth and its potential competition with Flipkart.
You have already witnessed Blinkit’s evolution under Zomato’s wing. Here I will explain certain facts about Blinkit’s growth.
Blinkit commands a significant share, nearly 40%, in the quick-commerce sector’s Gross Merchandise Value (GMV). This dominance isn’t just by chance – Zomato strategically acquired Blinkit, turning its financial struggles into a thriving express delivery service.
Now, let’s talk numbers. Blinkit handles over 1.25 lakh orders every day and offers an impressive range of over 5000 products available for delivery within 10 minutes.
That’s quite a feat, isn’t it?
This success comes as the quick-commerce segment in India’s e-grocery market expanded, with Blinkit claiming over a third of it in 2023.
You will understand Blinkit’s growth carefully by delving into the data of Blinkit’s performance since the Zomato acquisition. Go through the table given below. Here is a quick note. The figures given below are in Rs. crore.
| Particulars | Q1 in FY23 | Q2 in FY23 | Q3 in FY23 | Q4 in FY23 | Q1 in FY24 | Q2 in FY24 | Q3 in FY24 |
| GOV (Gross Order Value) | 1,172 | 1,482 | 1,749 | 2,046 | 2,140 | 2,760 | 3,542 |
| Revenue | 164 | 236 | 301 | 363 | 384 | 505 | 644 |
| Take Rate (Revenue/GOV *100) | 13.995 | 15.92% | 17.21% | 17.74% | 17.94% | 18.30% | 18/18% |
| Adjusted EBITDA | -326 | -259 | -227 | -203 | -144 | -125 | -89 |
| AOV (Average Order Value) | 528 | 568 | 553 | 522 | 582 | 607 | 635 |
| Orders (in million) | 22.2 | 26.1 | 31.6 | 39.2 | 36.8 | 45.5 | 55.8 |
| Store Count | 409 | 366 | 362 | 377 | 383 | 411 | 451 |
But the real question is, can Blinkit go head-to-head with Flipkart? Absolutely. Blinkit’s strength lies in its specialization in quick commerce, promising lightning-fast deliveries within 10 minutes, which is unmatched.
Zomato’s involvement adds even more firepower, providing Blinkit access to a massive user base. The aggressive expansion strategy across cities keeps Blinkit firmly in the competition.
Now, rewind a bit.
Blinkit’s story wasn’t always this rosy.
Zomato’s acquisition in June 2022 was seen as a lifeline for the struggling startup. But guess what? It worked. Zomato’s confidence in Blinkit’s Ebitda-level profitability by June 2025 is backed by impressive performance metrics – a daily delivery of 1.25 lakh orders and a range of 5000+ products ready in 10 minutes.
As we look forward, Zomato has big plans for Blinkit in the direct-to-consumer (D2C) space to take on Amazon and Flipkart. This move involves adding more brands across categories, building a robust supply chain, and positioning Blinkit as a major player in the e-commerce landscape.
So, there you have it – Blinkit’s journey from financial woes to becoming a formidable force in quick commerce, all set to challenge the giants in the e-commerce arena. Quite a story, isn’t it?
(B) Zomato’s Strategic Influence on Blinkit: A Game-Changing History
The pivotal role of Zomato’s strategic involvement in Blinkit’s trajectory cannot be overstated, significantly impacting the company’s stability and growth. You can say that Zomato acquired Blinkit & saved the sinking ship. Here’s how-
| Key Events | Details |
| Zomato’s Initial Stake: A Cautious Entry | Zomato’s journey with Blinkit commenced with a prudent move – acquiring a 10 percent stake in March 2022. This initial step showcased a calculated approach, with Deepinder Goyal, Zomato’s CEO, dedicating six months to a comprehensive exploration of Blinkit’s operations before considering a full acquisition. |
| Deepinder Goyal’s Distinct Leadership | Goyal’s leadership style sets him apart, characterized by swift decision-making and a laser-focused approach. His intensive scrutiny of Blinkit’s potential turnaround reflects a commitment to ensuring the strategic fit before proceeding with the acquisition. |
| Zomato’s Profitable Streak: Controlling Costs | Zomato’s profitability for three consecutive quarters attests to Goyal’s aggressive stance on cost control. This financial discipline has undoubtedly influenced Blinkit’s operational efficiency and fiscal health. |
| Impact on Blinkit’s Fortunes: A Crucial Turning Point | The Zomato-Blinkit alliance proved instrumental in steering Blinkit away from potential downturns. Zomato’s strategic intervention was especially critical given the challenges inherent in the quick-commerce sector, demanding razor-sharp delivery execution and astute inventory management. |
| Hyperpure and Data Focus: Strengthening Backend Dynamics | Sreedhar Prasad, an Internet business expert, highlights the significance of Zomato’s Hyperpure, the wholesale arm, as a robust backend platform. The data-centric focus of Zomato contributes to Blinkit’s predictive inventory management, reducing stockouts and enhancing overall operational efficiency. |
| Financial Resurgence: Stock Performance and Competitive Edge | Zomato’s shares, initially trading at Rs 66 apiece, experienced a temporary dip to Rs 42 following Blinkit’s acquisition speculation. However, a subsequent rally of over 280 percent, surpassing Nifty performance, positions Zomato favorably. The financial health of Zomato and Blinkit, comparatively better than Swiggy, empowers them to take calculated risks and maintain competitiveness. |
| Operational Synergies: A Work in Progress | Despite the success story, operational synergies between Zomato and Blinkit are evolving. A notable example is the separate maintenance of delivery fleets for food and quick commerce. This differentiation recognizes the distinct requirements of each service, ensuring optimal efficiency in covering varying distances. |
In essence, Zomato’s strategic involvement in Blinkit has not only safeguarded the latter’s fortunes but also set the stage for operational enhancements and sustained competitiveness in the dynamic quick-commerce landscape.
This alliance showcases the intricate balance between financial acumen, operational efficiency, and strategic foresight in the evolving e-commerce ecosystem.
(C) Driving Factors for Blinkit’s Growth: How Blinkit Evolved?
Let’s look at the major driving forces responsible for Blinkit’s growth-
| Factors | Description |
| Dominance in Quick-Commerce Landscape | Blinkit, the former Grofers, has etched its name in the quick-commerce sector, claiming an impressive close to 40% share in the Gross Merchandise Value (GMV) – a testament to its stronghold in the market. |
| Zomato’s Transformative Intervention | Zomato’s strategic acquisition of Blinkit served as a game-changer. Before this rescue act, Blinkit faced financial strains. Zomato’s intervention not only rescued but transformed Blinkit’s fortunes. |
| Pivot to Rapid Express Delivery | The quick-commerce segment experienced substantial growth, with Blinkit adapting swiftly. In 2023, it controlled over a third of India’s e-grocery market, propelled by the enduring appeal of “10-minute delivery” initiated by competitors. |
| Impressive Operational Metrics | Blinkit’s success is evident in its operational metrics. The platform handles over 1.25 lakh orders daily, with a diverse catalog of more than 5000 products ready for delivery within a remarkable 10-minute timeframe. |
| Zomato’s Confidence in Blinkit’s Profitability | Zomato’s confidence in Blinkit’s trajectory toward profitability by June 2025 stems from the platform’s noteworthy performance under their partnership. Blinkit’s pivot towards quick commerce, backed by Zomato, has been a strategic move. |
| Specialization in Quick Commerce | Blinkit’s specialization in quick commerce sets it apart. The promise of lightning-fast deliveries within 10 minutes aligns with the growing demand for rapid delivery services, giving it a unique selling proposition. |
| Urban-Centric Focus | Blinkit’s focus on urban areas, where demand for instant gratification is high, further enhances its competitive edge. This strategic focus allows Blinkit to excel in densely populated regions. |
| Aggressive Expansion Strategy | Aggressive expansion across cities showcases Blinkit’s ambition. While Flipkart already has a pan-India presence, Blinkit’s relentless growth strategy cements its position as a formidable player. |
| Access to Massive User Base | Zomato’s association provides Blinkit with access to a vast user base. Leveraging Zomato’s brand recognition spills over to Blinkit, giving it a head start in the competitive landscape. |
This journey, from financial challenges to standing tall in the e-commerce arena, showcases Blinkit as a formidable contender against heavyweights like Flipkart.
Now, it is time to look at the details of the multifaceted driving forces that have catapulted it into a robust competitor against industry titans like Flipkart.
(C.1) Dominance in Quick-Commerce
Blinkit’s growth story takes center stage in the quick-commerce realm, boasting an impressive nearly 40% share of the Gross Merchandise Value (GMV). When compared to its competitors – Instamart at 37–39% and Zepto, backed by Y-combinator – Blinkit’s dominance becomes a defining characteristic in the e-commerce landscape.
Blinkit handles an astounding 1.25 lakh orders daily, underscoring the magnitude of its growth and influence in the market.
(C.2) Strategic Zomato Partnership
The narrative of Blinkit’s growth wouldn’t be complete without acknowledging Zomato’s strategic intervention. Before Zomato’s acquisition, Blinkit grappled with financial strains, but the acquisition became a turning point. Zomato’s backing allowed Blinkit to pivot towards quick commerce, aligning with the escalating demand for rapid delivery services.
Zomato’s confidence in Blinkit’s Ebitda-level profitability by June 2025 stands as a beacon, emphasizing the symbiotic success of Blinkit’s growth under Zomato’s ownership.
(C.3) Surge in Quick-Commerce Segment
Blinkit’s growth isn’t an isolated phenomenon; it mirrors the surge in the quick-commerce segment. Controlling over a third of India’s e-grocery market in 2023, Blinkit joined the race in December 2021. The enduring appeal of “10-minute delivery” has been a cornerstone of Blinkit’s growth strategy, surprising even beyond the initial Covid-induced lockdowns.
Blinkit delivers over 1.25 lakh orders daily, solidifying its dominance and reaffirming its status as a powerhouse in the e-commerce landscape.
(C.4) Impressive Operational Metrics
Blinkit currently delivers more than 1.25 lakh orders every day in India. The platform offers more than 5000 products ready for delivery within 10 minutes.
The metrics speak volumes about Blinkit’s growth trajectory. With over 1 million orders in a week across 12 to 13 cities, Blinkit’s operational efficiency and customer trust are paramount. These metrics showcase Blinkit’s commitment to not just growth but sustained excellence in the e-commerce arena.
(C.5) Strategic Product Range
Blinkit’s growth isn’t just about speed; it’s a strategic focus on essentials. While rivals like Flipkart offer a broad spectrum of products, Blinkit zeroes in on daily essentials – groceries, household items, etc. This targeted approach ensures Blinkit meets immediate consumer needs effectively.
In Q3 FY24, Blinkit’s adjusted EBITDA loss was reduced to Rs.89 crore, a clear indication of the efficiency and viability of Blinkit’s growth strategy.
(C.6) Zomato Synergy
Blinkit’s association with Zomato goes beyond ownership; it’s a synergy that provides access to a vast user base. Zomato’s brand recognition and existing customer trust extend to Blinkit, giving it a competitive edge.
(C.7) Aggressive Expansion Strategy
Blinkit’s growth is not confined; it’s a saga of aggressive expansion across cities. While Flipkart already boasts a pan-India presence, Blinkit’s relentless growth strategy ensures it remains a potent force in the ever-expanding market.
Blinkit’s rise to prominence isn’t a stroke of luck; it’s a result of strategic decisions, operational excellence, and a keen understanding of the market dynamics. Zomato’s backing, coupled with Blinkit’s focus on quick commerce and impressive metrics, positions it as a worthy competitor against the likes of Flipkart.
The landscape of e-commerce is evolving, and Blinkit is at the forefront, rewriting the rules of rapid delivery and customer satisfaction!
(D) Exponential Blinkit’s Growth: Can it Compete with Flipkart?
Let’s navigate through the intricacies and unveil how Blinkit not only competes but stands tall against Flipkart.
| Blinkit’s Competitive Edge | Description |
| Niche Focus | Blinkit carves a niche in the quick-commerce segment, placing utmost emphasis on ultra-fast delivery within minutes. Unlike Flipkart, a versatile giant across various product categories, Blinkit’s specialization in rapid delivery positions it as a formidable contender in specific scenarios. |
| Delivery Speed | Blinkit’s promise of delivering products within 10 minutes is a game-changer. In a world where time is precious, this quick turnaround appeals to busy consumers. Flipkart, while efficient, doesn’t match Blinkit’s lightning-fast delivery. |
| Urban Convenience | Blinkit primarily operates in urban areas, where the demand for instant gratification is high. Flipkart, with its broader reach, caters to both urban and rural markets. However, Blinkit’s urban focus allows it to excel in densely populated regions. |
| Product Range | Flipkart boasts an extensive range of products, from electronics to fashion to home goods. In contrast, Blinkit’s focus on essentials (groceries, household items, etc.) ensures it meets consumers’ immediate needs. This targeted approach can be advantageous. |
| Zomato Synergy | Blinkit’s association with Zomato provides access to a vast user base. Zomato’s brand recognition and existing customer trust spill over to Blinkit, giving it a head start. This synergy sets Blinkit apart in the competitive landscape. |
| Aggressive Expansion | Blinkit’s rapid expansion across cities demonstrates its ambition. While Flipkart already has a pan-India presence, Blinkit’s aggressive growth strategy keeps it in the race. The ability to cover ground swiftly showcases Blinkit’s determination to compete on a national scale. |
| Customer Experience | Blinkit’s focus on quality, freshness, and timeliness enhances customer satisfaction. Flipkart, too, prioritizes customer experience, but Blinkit’s specialization allows it to fine-tune its services, providing a more tailored and efficient experience. |
As you navigate the e-commerce landscape, it becomes evident that Blinkit’s unique value proposition, speed, synergy with Zomato, aggressive expansion, and customer-centric approach position it as a worthy competitor to Flipkart.
While Flipkart’s scale and diverse offerings remain formidable, Blinkit’s laser focus on quick commerce sets it apart, promising a dynamic and competitive market for consumers like you.
Note: Don’t you wonder how does Blinkit make money? If yes, then dive into Blinkit’s Business Model where we have thoroughly explained its business model, revenue sources, and impressive marketing strategies.
(D.1) Strategic Inventory Management: Key to Blinkit’s Growth
As discussed above, Blinkit’s ascendancy in the quick-commerce domain is not just by chance but a result of meticulous execution, disciplined working capital practices, and innovative cataloging strategies. Let’s dissect the factors that give this Gurugram-based company a distinctive edge, as outlined by industry insiders and experts.
(D.2) Daily Purchase Orders (POs): Working Capital Efficiency
Sreejith Moolayil, founder of True Elements, reveals a critical distinction – Blinkit generates daily purchase orders (POs), unlike counterparts Swiggy Instamart and Zepto, which operate on a weekly schedule. This daily approach minimizes working capital requirements, ensuring Blinkit maintains a lean inventory. Despite potential missed opportunities, Blinkit prioritizes bottom-line growth.
(D.3) Nimble Inventory Management: A Daily Balancing Act
While the daily shipping of supplies nationwide might pose challenges for other brands, Blinkit leverages this practice for nimble inventory management. This approach enables Blinkit to align its inventory with demand patterns swiftly, maintaining optimal control over its finances – a pivotal aspect given the financial dynamics of quick-commerce companies based on take rates from each consumer order.
(D.4) Take Rates and Advertising Revenue: Blinkit’s Unique Model
Distinct from traditional e-commerce models, Blinkit’s revenue structure involves taking rates ranging between 15 and 35 percent, covering listing fees, advertising revenue, and shipping charges. Notably, in Q3FY24, Blinkit’s advertising revenue growth outpaced order value growth, showcasing a unique facet of its revenue dynamics.
(D.5) Expanding Stock Keeping Units (SKUs): Diversifying Offerings
Blinkit, particularly, stands out by expanding its stock-keeping units (SKUs), venturing beyond daily essentials to include products like reading glasses and electronics. This strategic move aligns Blinkit with established e-commerce players, enhancing its competitiveness and catering to a broader consumer base.
(D.6) Wider Assortment Impact: Boosting Cart Value
Experts emphasize that a broader assortment translates to higher cart values in each purchase. Blinkit’s expansion beyond essentials not only caters to diverse consumer needs but also enhances the overall value of each transaction, contributing to sustained growth.
(D.7) Building Rapport with Sellers: A Crucial Advantage
Blinkit’s success extends to building strong relationships with top sellers. This rapport-building strategy, often overlooked, provides Blinkit with a competitive edge. Industry executives highlight that Blinkit’s approach to establishing a wider assortment has influenced others in the sector to follow suit.
(D.8) User Base Growth: Habit, Trust, and Brand Recall
Widening its assortment and building relationships contribute to Blinkit’s user base growth. A diverse product offering creates habits and trust among users, fostering better brand recall. The company’s ability to resonate with consumers extends beyond a transactional level, solidifying its presence in the quick-commerce landscape.
In short, Blinkit’s strategic inventory management, diversified revenue model, and concerted efforts in building relationships position it as a frontrunner in the dynamic quick-commerce sector.
The company’s focus on efficiency and innovation has not only set it apart from competitors but has also influenced industry trends, marking Blinkit as a winner in the evolving e-commerce landscape.
(E) Future Perspective of Blinkit’s Growth
Zomato believes Blinkit, the quick-commerce app, could outshine its food delivery counterpart. The big boss, Deepinder Goyal, confidently stated that Blinkit might bring more value to shareholders than Zomato’s food delivery in the next 10 years. Picture this like a letter he wrote to shareholders in August 2023, boasting about Blinkit’s impressive numbers, hitting record highs in Gross Order Value (GOV) and customers after a tough time due to a delivery workers’ strike in Delhi-NCR.
But here’s the thing – while Blinkit is doing great, there are some challenges. The bigger question is, can Blinkit go beyond the major cities? Think about it – like with food delivery, where most of Zomato’s sales come from a small group of users. The real challenge is reaching more people beyond the tech-savvy city crowd.
Now, experts say the golden age of food delivery growth is kinda over. Swiggy and Zomato bosses agree; there’s not much room left to grow in the big cities. Quick commerce, though similar to food delivery for us, faces a real test – will folks in smaller cities pay extra for faster deliveries of everyday stuff? As Blinkit grows, it has to figure out the answers.
But for now, pat them on the back for turning things around when many thought it wasn’t possible!
