Blinkit’s move to an inventory-led model, effective September 1, 2025, marks a significant change in its operational strategy. Here’s a deeper dive into what this means:
- From Marketplace to Owner: Previously, Blinkit operated primarily as a marketplace. This meant they connected customers with local sellers, who were responsible for their own inventory. Blinkit provided the platform and the delivery network. Now, with the inventory-owned model, Blinkit will purchase products directly from brands and suppliers, store them in its own facilities (known as “dark stores”), and sell them directly to customers. They will become the legal supplier of the goods, issuing invoices under their own GSTIN.
- Why the Change?
- Greater Control: This shift gives Blinkit end-to-end control over the entire process, from procurement to delivery. This can lead to better quality control, reduced stockouts, and a more consistent customer experience.
- Improved Margins: By cutting out the middleman (the third-party sellers), Blinkit can negotiate better prices directly with brands and potentially increase its profit margins. This also opens the door for them to introduce their own private-label products.
- Regulatory Compliance: This change is also driven by India’s foreign direct investment (FDI) regulations. Blinkit’s parent company, Zomato, has restructured to become an “Indian-owned and controlled company” (IOCC), which legally allows them to own and sell inventory directly.
- Expansion into New Categories: The inventory-led model makes it easier for Blinkit to expand into new, high-margin product categories like electronics, toys, home goods, and seasonal items.
- Financial Rationale: The financial implications of this shift are a key driver. Eternal CFO Akshant Goyal had noted in a previous earnings call that if Blinkit fully owned its inventory in FY25, the working capital required would have been under ₹1,000 crore, which is about 3-5% of Blinkit’s gross order value.
- Impact on Sellers: Sellers have been given a deadline to opt into the new system. Those who don’t will have their unsold inventory returned. This could lead to a decrease in business for some local sellers who relied on the Blinkit platform.
The Quick Commerce Landscape
Blinkit’s move is part of a larger trend in the quick commerce industry. Here’s some context on the different business models:
- Inventory-Led Model: As described above, the company owns the inventory. This is the model that Blinkit is moving to, and it’s also used by competitors like Zepto.
- Hyper-Local Model: This model uses local vendors close to the customer’s address for faster delivery.
- Multi-Vendor Platform Model: This is a marketplace model where multiple vendors manage their own digital storefronts on the platform.
- Omni-Channel Model: This approach combines online and offline shopping, allowing customers to purchase through websites, apps, or physical stores.
The quick commerce sector is highly competitive, with major players like Swiggy Instamart, Zepto, and BigBasket all vying for market share. The key differentiators are delivery speed, product selection, and price.
Zomato’s Role and Strategy
Zomato’s acquisition of Blinkit in 2022 was a strategic move to enter the quick commerce market. Here’s why this is important:
“Super Brands” not “Super App”: Zomato’s CEO, Deepinder Goyal, has stated that he believes in building “super brands” rather than a single “super app.” This means that while there will be some integration, Blinkit will continue to operate as a distinct brand.
Synergies with Food Delivery: Zomato sees a lot of synergy between its core food delivery business and quick commerce. The customer base is similar, and there are opportunities to integrate the services, such as having a Blinkit tab on the Zomato app.
Path to Profitability: While the quick commerce model is cash-intensive, Zomato believes that the move to an inventory-led model will make Blinkit’s operations more efficient and profitable in the long run.
