UNDERSTANDING
BLINKIT:
A COMPREHENSIVE
ANALYSIS OF A
QUICK-COMMERCE
Presented by -
POWERHOUSE
Avimukt Mishra
Manoj
Anuj Godara
ABOU
T
BlinkIt, a leading player in India's quick-
commerce sector, has rapidly expanded its
network of dark stores to deliver groceries
and essential items within minutes.
Formerly known as Grofers, BlinkIt, now a
subsidiary of Zomato, has significantly
impacted the Indian retail landscape.
Despite its growth and operational
improvements, the company operates in a
highly competitive and capital-intensive
industry.
COMPANY OVERVIEW
• Founded: December 2013 (Originally Grofers) [Acquired by Zomato:
August 2022]
• Founders: Albinder Dhindsa and Saurabh Kumar
• Headquarters: India
• Parent Company: Zomato (Acquired in June 2022 for $840 million)
• Current Valuation: $1.01 Billion
• Business Model: Quick Commerce (10–15-minute grocery delivery)
• Primary Markets: Operates in 27 Indian cities with 526 dark stores
(FY24) MARKET OPPORTUNITY
• Indian Online Grocery Market Size (2020): $2.9
Billion
• Projected CAGR: 37.1%
• Significant growth potential in quick commerce
FINANCIAL
PERFORMANCE ANALYSIS
(2019-2024)
YEA
R
REVENU
E (₹ CR)
GROWT
H RATE
KEY OBSERVATIONS
2019 ~50 N/A Initial scaling phase
2020 ~150 200% COVID-19 acceleration
2021 ~350 133% Rapid expansion
2022 ~750 114% Zomato acquisition
Consolidation &
2023 ~1200 60%
optimisation
REVENUE AND GROWTH:
Quick commerce revenue surged 116% YoY, from
₹1,063 crore (FY23) to ₹2,301 crore (FY24).
GOV AND ORDER VOLUME:
• Gross Order Value (GOV): ₹12,469 crore, up
93% YoY.
• Order Volume: 203 million orders, a 71% YoY
increase.
PROFITABILITY:
• Achieved EBITDA-positive in March 2024.
• EBITDA margin improved from -15.7% (FY23)
to -3.1% (FY24).
STORE AND CAPACITY EXPANSION:
• Expanded to 526 stores, with warehousing
capacity growing 28% YoY to 4.8 million sq.
ft.
• Targeting 1,000 stores by FY25 for enhanced
KEY FINANCIAL
GROSS MERCHANDISE VALUE
METRICS UNIT ECONOMICS CUSTOMER ACQUISITION
(GMV) • Average Order Value: METRICS
Grew from ₹500 Cr in 2019 to ⚬ BlinkIt AOV: ₹335 • CAC (Customer Acquisition
₹12,469 Cr in FY24, showing a ⚬ Competitor AOV: ₹300-₹400 Cost): Decreased from ₹250
CAGR of approximately 91%. ⚬ Delivery Cost: ₹50-70 per (pre-acquisition) to ₹150
• 2019: ₹500 Cr order (FY24) due to loyalty
• 2020: ₹1,200 Cr • Gross Margin: Improved from programs and improved
• 2021: ₹2,500 Cr 15% (FY21) to 22% (FY24) brand visibility.
• 2022: ₹4,500 Cr through cost optimization and • Repeat Customer Rate: 40-
• 2023: ₹6,000 Cr private-label product 50%
introductions. • Monthly Active Users: Grew
COST STRUCTURE PER ORDER from 500,000 to 2 million
REVENUE AND GROWTH FUNDING ROUNDS
• Last Mile Delivery: 7% (₹42 per
• Annual Revenue: $302 Million Series A - $500K
order)
• Daily Orders: 125,000+ orders Series B - $10M
• Dark Store/Warehousing: 6.5%
• Revenue Growth: 26.2% from FY Series C - $36.5M
(₹39 per order)
2020 Series D - $120M
• Variable Costs: 2% (₹12 per
• Funding Raised: Nearly $1 Series E - $58.6M
order)
Billion Series F - $264M
• Customer Acquisition Cost: ₹1.8
• Market Share: 13-14% in Indian
per order
grocery delivery market
CONSULTING FRAMEWORK
ANALYSIS
STRATEGIC EVOLUTION
YEAR
OF BLINKIT - I
KEY EVENTS AND STRATEGIES FINANCIAL HIGHLIGHTS OPERATIONAL
HIGHLIGHTS
TECHNOLOGICAL
ADVANCEMENTS
2019 • Pivotal restructuring to quick • Revenue: ₹5075 • Closed operations in • Initial development
commerce Crore smaller cities of delivery routing
• Reduced product categories • Funding Raised: $60 • Consolidated algorithms
• Focused on hyperlocal delivery Million inventory in major • Basic inventory
• Developed micro-fulfillment centers metropolitan areas management
• Significant systems
workforce reduction
2020 • COVID-19 acceleration: Rapid • Revenue: ₹150-200 • 10-15 minute • Advanced route
expansion of dark stores Crore delivery promise optimization
• Technology investment in delivery • Growth: 200% • Contactless delivery algorithms
routing • Funding: $125 • Implementation of • AI driven demand
• Enhanced safety protocols Million additional safety protocols prediction
capital • Customer
preference tracking
2021 • Scaling and optimization: Reduced • Revenue: ₹350-400 • Optimized micro • Improved inventory
delivery costs Crore fulfilment centers management
• Standardized supplier contracts • Growth Rate: 133% • Enhanced Customer systems
• Market expansion: Deepened • Gross Merchandise retention strategies • Predictive analytics
presence in top cities Value: ₹2,500 Crore for demand
forecasting
STRATEGIC EVOLUTION
YEAR
OF BLINKIT - II
KEY EVENTS AND STRATEGIES FINANCIAL HIGHLIGHTS
OPERATIONAL
HIGHLIGHTS
TECHNOLOGICAL
ADVANCEMENTS
• Leveraged Zomato's
• Zomato acquisition: Strategic
technological
merger, shared infrastructure, • Revenue: ₹750-800 • Shared delivery fleet
capabilities
capital infusion Crore and infrastructure
2022 • Enhanced data
• Operational integration: Shared • Acquisition Value: • Unified customer
analytics for
delivery infrastructure, combined ₹4,447 Crore experience
personalized
data analytics
recommendations
• Profitability focus: Reduced CAC,
improved gross margins, developed • Expanded to Tier 2/3 • Advanced AI for
private label products • Revenue: ₹1,200- cities demand prediction
• Market expansion: Tier 2/3 city 1,500 Crore • Introduced B2B • Automated
2023-
penetration, B2B solutions, • Focus on unit grocery solutions inventory
2024
subscription models economics • Implemented management
• Technology evolution: Advanced AI, improvement subscription-based • Predictive delivery
automated inventory, predictive models routing
routing
KEY TAKEAWAYS:
• Pivot to Quick Commerce: A strategic shift from broad e-commerce to hyperlocal delivery model.
• COVID-19 Acceleration: The pandemic accelerated the growth and adoption of quick commerce.
• Zomato Acquisition: A strategic move to leverage synergies, capital infusion, and expanded market reach.
• Profitability Focus: A shift towards sustainable growth and improved unit economics.
• Technology-Driven Innovation: Continuous investment in technology to optimize operations and enhance customer
STRENG WEAKNE
THS
• Quick delivery
infrastructure
SS
• High customer acquisition
costs
• High-density store
• Thin margins
network • Dependency on gig
• Technology-driven model
workers
• Zomato's financial
• Limited rural penetration
SWOT
backing
SW
• Strong urban market
presence
OT THREAT
OPPORTU
ANALY NITIES
• Tier 2/3 city expansion •
S
Increasing competition
• Regulatory challenges
SIS
• Grocery subscription
models • Economic downturn
• Private label development • Rising operational costs
• Cross-selling with Zomato
PORTER'S FIVE
FORCES
BARGAINI BARGAINI THREAT OF
THREAT OF
NG POWER NG POWER SUBSTITUT COMPETITI
NEW
OF OF E VE RIVALRY
ENTRANTS
SUPPLIERS BUYERS PRODUCTS
Moderate Low High High High
• High initial • Multiple local • Multiple • Traditional • 3rd largest
investment and national competing grocery stores grocery
• Technology suppliers platforms • Local kirana delivery
barriers • Standardized • Low switching stores platform
• Strong grocery costs • Hypermarkets • Swiggy
incumbent inventory • Price • E-commerce Instamart
players sensitivity giants • Amazon Fresh
• Food delivery • BigBasket
apps • Zepto
• JioMart
EVALUATION OF STRATEGIC
FRAMEWORK
Innovate and adapt to evolving consumer needs and
STRATEGI
competitive pressures. Explore new business models, expand
C product offerings, and forge strategic partnerships.
RENEWAL
BlinkIt executed well, scaling rapidly and adapting to
STRATEGIC
market changes. However, unit economics and
IMPLEMENTATIO competition remain challenges.
N
BlinkIt's strategy aligns with its strong tech infrastructure and
STRATEGIC
experienced team. The increasing smartphone penetration and
FIT changing consumer preferences favor its growth.
STRATEGI BlinkIt's strategic intent is clear: to become the leading quick-
C INTENT commerce player in India. The company has a strong vision and is
committed to its long-term goals.
MARKET GROWTH
Low High
Dogs
Question
Low
Non-core product Tier 2/3 city
categories Marks
expansion
MARKET SHARE
BCG
MATRIX
Stars
Cash Cows
High
Quick commerce in
Established dark metros, where
stores in Tier 1 BlinkIt dominates
cities
Increasing Risk
Exsiting New
Products Products
Markets
Exsiting
Market Product
ANSOFF’S Penetration
Promotions and
Development
Increasing Risk
MATRIX loyalty programs
in metro cities
Private-label
offerings,
subscription
models
Markets
New
Market
Diversification
Development
Expansion into Advertising
Tier 2/3 cities services within
the app
POLITICAL
Gig economy
regulations and
local business
laws
LEGAL
ECONOMIC
Compliance with
labor laws and Inflation, rising
consumer delivery costs, and
protection urban spending
power
PESTEL
Framework
ENVIRONMENTAL
Sustainable Consumer demand
packaging and for convenience
eco-friendly and instant delivery
logistics
AI, route
SOCIA
optimization, and L
app innovations
TECHNOLOGICA
L
VALUE CHAIN ANALYSIS
BALANCED
SCORECARD
PERSPECTIV GOAL MEASURE INITIATIVE
E
Financial Achieve profitability by reducing costs and Gross margin, EBITDA, revenue Implement AI-powered route
increasing revenue through private labels growth, cost-to-serve. optimization, expand private label
and expanded markets. offerings.
Customer Increase customer retention and Customer satisfaction score Introduce subscription models,
satisfaction through faster delivery, (CSAT), Net Promoter Score (NPS), enhance app personalization,
product variety, and loyalty programs. repeat customer rate. improve customer service.
Internal Streamline operations and improve Delivery time, order fulfillment Optimize dark store placement,
Processes efficiency in dark stores and last-mile accuracy, supply chain implement real-time inventory
delivery. optimization. tracking.
Learning Enhance technological infrastructure, Employee training hours, Invest in AI-driven tools, offer
and Growth increase employee skill sets, and foster technology adoption rate, AI workforce training programs.
innovation. deployment.
COMPETITOR
COMPETITORS: BENCHMARKING
• Swiggy Instamart: Known for its delivery speed
and widespread reach.
• BigBasket: Focuses on broader grocery
categories and maintains strong brand
recognition.
SWIGGY
BIGBASKE
METRIC BLINKIT INSTAMAR
T
T
10–15
15–30 30–60
Delivery Speed minute
minutes minutes
s
Market Share 14% 25% 20%
Customer
~45% ~50% ~60%
Retention Rate
REASONS FOR LOSSES AND
DECLINING MARKET SHARE
1. Intense competition: The Indian quick-commerce market is highly
competitive, with players like Zepto, Swiggy Instamart, and Dunzo.
2. High operational costs: Quick commerce requires a dense network of dark
stores, high delivery personnel costs, and significant technological
investment.
3. Low customer loyalty: Customers often prioritize convenience and price
over brand loyalty, making it challenging for Blinkit to retain customers.
4. Limited geographic presence: Blinkit's presence is limited to a few cities,
SOLUTION
Objective Expected Key Results
Expand - Open 50 new dark stores by Q4 2025.
BlinkIt’s
market - Achieve 25% market share in Tier 2 cities by 2025.
share in
Tier 2/3 - Increase customer acquisition in new markets by 30%
cities within 6 months of launch.
- Increase average order value (AOV) by 15% by Q2 2025.
Achieve
- Reduce customer acquisition cost (CAC) by 20% by Q3
profitabilit
2025.
y in 2025
- Reach a positive EBITDA margin by Q4 2025.
- Achieve a CSAT score of 85% or higher.
Enhance - Implement loyalty programs for 40% of active users by
customer end of FY25.
experience
- Reduce average delivery time to 10 minutes in metro
areas.
FINANCIAL PROJECTIONS
AND EXPECTED OUTCOMES
REVENUE GROWTH
PROFIT MARGINS
Target CAGR of 25% over
the next five years. Increase to 25–30% by
[₹4,500 Cr] FY28 through cost
CUSTOMER BASE optimization. MARKET SHARE
Double monthly active Expand from 14% to 20%
users to 5 million by FY28. in the quick-commerce
segment.
STRATEGIC
RECOMMENDATIONS FOR
BLINKIT
PROFITABILITY FOCUS
Why: High operational costs and thin margins challenge sustainable profitability.
Optimizing unit economics can strengthen financial stability.
ACTIONS:
1.Introduce Private-Label Products:
⚬ Example: Launch BlinkIt-branded staples (e.g., rice, pulses, and spices) with higher margins.
⚬ Impact: Reduces reliance on third-party brands, improving gross margins by 5–10%.
2.Delivery Optimization:
⚬ Example: Use AI-driven route mapping to cluster deliveries within a 3-km radius.
⚬ Impact: Cuts delivery costs by reducing average travel time and fuel consumption.
GEOGRAPHICAL EXPANSION
Why: Current operations are concentrated in metro cities, leaving a gap in Tier 2/3
markets where online adoption is growing.
ACTIONS:
1.Expand Dark Store Network to Emerging Cities:
⚬ Example: Open stores in cities like Jaipur, Kochi, and Indore.
⚬ Impact: Captures underserved markets with lower customer acquisition costs (CAC).
2.Target Regional Products:
⚬ Example: Stock local delicacies (e.g., Bikaneri bhujia in Rajasthan).
⚬ Impact: Builds customer loyalty and differentiates offerings.
3.Collaborate with Regional Suppliers:
⚬ Example: Partner with local organic farmers to stock fresh produce.
⚬ Impact: Creates a sustainable supply chain and taps into niche demand.
ENHANCE CUSTOMER
RETENTION
Why: Retaining customers is more cost-effective than acquiring new ones. High retention
improves lifetime value (LTV) per user.
ACTIONS:
1.Loyalty Programs:
⚬ Example: Launch “BlinkIt Rewards” where customers earn points redeemable for discounts.
⚬ Impact: Encourages repeat purchases, reducing churn rates.
2.Subscription Services:
⚬ Example: Offer “BlinkIt Prime” for free deliveries on a monthly fee ( ₹299/month).
⚬ Impact: Locks in recurring revenue while enhancing customer loyalty.
TECHNOLOGY-DRIVEN
EFFICIENCY
Why: Technology can streamline operations, reducing costs while improving service
quality.
ACTIONS:
1.Predictive Inventory Management:
⚬ Example: Use demand forecasting to ensure high-demand products are always in stock.
⚬ Impact: Reduces inventory waste and increases order fulfillment rates.
2.AI-Based Workforce Scheduling:
⚬ Example: Use machine learning to schedule gig workers based on peak demand patterns.
⚬ Impact: Minimizes idle time and optimizes workforce utilization.
SUSTAINABILITY INITIATIVES
Why: Consumers are increasingly conscious about environmental
impact. Sustainable practices can build brand goodwill.
ACTIONS:
1.Eco-Friendly Packaging:
⚬ Example: Replace plastic bags with biodegradable or reusable alternatives.
⚬ Impact: Appeals to environmentally-conscious consumers and aligns with regulatory trends.
2.Carbon-Neutral Deliveries:
⚬ Example: Partner with EV fleet providers to transition deliveries to electric vehicles.
⚬ Impact: Reduces carbon footprint, enhancing ESG (Environmental, Social, Governance)
credentials.
3.Customer Carbon Offsets:
⚬ Example: Allow customers to contribute ₹5 per order towards green initiatives.
⚬ Impact: Creates a community-driven sustainability model.
DIVERSIFICATION AND REVENUE
STREAMS
Why: Overreliance on grocery sales limits growth potential. Diversified
revenue streams can boost profitability.
ACTIONS:
1.Advertising as a Revenue Stream:
⚬ Example: Sell ad space on the BlinkIt app to FMCG brands targeting urban audiences.
⚬ Impact: Generates additional revenue from BlinkIt’s high daily traffic.
2.B2B Partnerships:
⚬ Example: Offer inventory management solutions to local kirana stores.
⚬ Impact: Creates a new business vertical while leveraging existing infrastructure.
DATA-DRIVEN DECISION MAKING
Why: Real-time analytics can uncover insights to improve
performance and customer satisfaction.
ACTIONS:
1.Heatmap Analysis:
⚬ Example: Track order density via heatmaps to optimize dark store locations.
⚬ Impact: Enhances operational efficiency and reduces delivery times.
THANK
YOU!
