FROM SKEPTICISM

TO SYNERGY:

How Zomato's 'Blinkit' Gamble

Evolved from Perceived Parasite
to Profitable Partner

Dissecting Blinkit's Lightning-

Fast Ascent in Q-Commerce
 Critics Silenced: How Zomato and Blinkit Proved the Naysayers Wrong

Ashneer Grover tweeted:

"On the stock market - @letsblinkit
served piping hot misery to zomato in 10
minutes! Yeh hi agar @Swiggy ko merge Blinkit more valuable than
kar liya hota to ₹450 ka stock hota !!" Zomato's food delivery business:
Goldman Sachs

Zomato CEO Deepinder Goyal

commented: HSBC Global Research analysts
noted:
"This business is also synergistic
with our core food business, giving "Blinkit would get access to Zomato's 15-
Zomato the right to win in the long-
term." million monthly transacting users and
nearly 60-million monthly active users.
This could significantly reduce Blinkit's
customer acquisition cost and improve
the stickiness and repeatability of
ordering across grocery and food
delivery."

From Critique to Kudos: Zomato-Blinkit Merger's Triumphant Journey

How Blinkit's Meteoric Rise Propels Zomato's Valuation Skyward

Key Analysis of Blinkit's Impact on Zomato's Growth

Revenue Surge: Blinkit's revenue tripled, boosting Zomato's

financial performance.
Profit Turnaround: Zomato achieved profitability in FY24,
reversing previous losses.
Market Cap Growth: Zomato's market cap doubled to INR 2
trillion in FY24.
Delivery Efficiency: Average delivery time reduced to 12.5
minutes.
Order Fulfillment: Achieved over 99% item fulfillment rate,
enhancing customer satisfaction.
Store Expansion: Blinkit added 75 new stores, reaching 526 total.
Customer Engagement: Daily orders hit 400,000, surpassing
competitors.
EBITDA Positive: Blinkit turned adjusted EBITDA positive in
March 2024.
Revenue Diversification: Increased revenue from advertising,
delivery services, and commissions.

Data sourced from various external sources; authenticity may vary—use discretion in interpretation
 Blinkit’s Journey

"Blinking into the Future: How Grofers Became a

Quick Commerce Sensation"
Continuous
Expansion Rebranding
@December 2021 Growth under
Series F Funding:
Business Model Raised $220 million led Rebranded from Grofers to
Zomato
Pivot by SoftBank Vision Blinkit, aligning with the vision @2023-24
Fund; valuation reached of quick commerce.
Shut operations in 9 cities $800 million. Introduced express grocery Monthly Transacting
including Bhopal, Hired 5,000 employees, delivery in Gurgaon. Users: Approximately 6.0
Seed Funding Coimbatore added 700 kirana shops Launched 10-minute delivery million
01 Raised $500,000 from 03 Shifted from a marketplace 05 to its network. 07 service in top 12 cities. 09 Total Orders: 55.8 million 11
Sequoia Capital model to an inventory-led Raised $20.2 million Achieved over 20,000 under- Gross Order Value (GOV):
promising 90-minute model, moving away from from the Times Group. 15-minute deliveries per day
₹3,542 crore
delivery in Delhi-NCR Expanded operations to across 10 cities
90-minute delivery.
27 cities

Current status
Beginning@ Growth Market Presence
Series A&B funding Workforce trimming & @2024
December 2013 Milestone@2018 @2020
Series A Funding: Raised $10
Zomato intervention Blinkit reported 526 stores
Crossed Rs 100 crore Held a 2% market share in the
Albinder Dhindsa and 02 million from Sequoia Capital 04 06 competitive online grocery 08 @2022 10 operational

Saurabh Kumar founded the monthly GMV in January Plans announced to expand
and Tiger Global market
Series E Funding: Raised Blinkit reduced its workforce to 1,000 dark stores by the
company as "Grofers" in Series B Funding: Raised $35
$61.6 million led by end of FY25.
Gurgaon, India. by 1,600 employees (about
million from Tiger Global and
SoftBank with 5%) to cut costs.
Sequoia Capital; valuation
participation from Tiger Zomato granted a $150
crossed $100 million
Global and Apolette Asia. million loan to Blinkit
Operational expansion to
Launched subscription Zomato announced the
multiple cities
servic acquisition of Blinkit for
Ventured into FMCG with $568 million in an all-stock
seven brands. deal.

Data sourced from various external sources; authenticity may vary—use discretion in interpretation
 "From Past to Future: Navigating the Trends"
E-COMMERCE versus Q-COMMERCE E-commerce :
Past 5 Years Trends Past 5 Years Trends
Market size explosion: The E-commerce market in India has seen explosive growth,
expanding from approximately $50 billion in 2018 to $88.65 billion in 2023, nearly doubling in
size.
Skyrocketing projections: The market is expected to rocket to $112.93 billion in 2024 and
soar to a staggering $299.01 billion by 2029, showcasing a meteoric rise.
Stellar CAGR: E-commerce is projected to maintain a blazing CAGR of 21.5% from 2024 to
2029, indicating a sustained upward trajectory.
User base surge: The number of online shoppers is anticipated to skyrocket from around 140
Q-Commerce share in overall retail market
E-Commerce share in overall retail market million in 2018 to a projected 220 million by 2025, representing a massive influx of digital
consumers.
Expected Future 5 Years Trends
Expected Future 5 Years Trends Penetration leap: Online retail penetration is expected to jump from 8% in 2024 to 14% by
2028, signifying a significant shift in consumer behavior.

Q-commerce:

Lightning-fast growth: Q-commerce has experienced a meteoric rise, with the market size
catapulting from around $0.5 billion in 2019 to $3.19 billion in 2023, representing an
E-Commerce share in retail market(Next 5 years) Q-Commerce share in retail market(Next 5 years)
astronomical increase.
Explosive expansion: The sector is projected to skyrocket to $6 billion by FY 2025,
showcasing an eye-popping growth rate of 75-85% year-over-year.
User base boom: Q-commerce is expected to add approximately 5 million new Monthly
Transacting Users (MTUs) in the coming year, indicating a massive surge in adoption.
Order frequency spike: The average monthly ordering frequency has jumped from 4.4 in FY
2021 to nearly 6 in FY 2024, demonstrating a significant shift in consumer habits.
Metro dominance: Metro cities have maintained a lion's share of about 90% in the Q-
commerce market, highlighting the urban-centric nature of this rapid growth.

Q-Commercer vs E-Commerce Q-Commerce share vs E-Commerce share

Data sourced from various external sources; authenticity may vary—use discretion in interpretation
 "Quick Commerce Titans: Blinkit’s Market Share Battle"
Key competitors analysis
Revenue Growth: Blinkit's revenue grew from ₹236 crore in
FY22 to ₹2,301 crore in FY24, nearly a tenfold increase.
Market Share: Blinkit leads the quick commerce market with a
46% share by GMV, ahead of Swiggy Instamart (27%) and
Zepto (21%).
Order Size: Blinkit's average order value increased to ₹635,
Market share comparision surpassing competitors like Zepto and Instamart.
REVENUE, EXPENDITURE, NET LOSS Comparision Net Profit: Despite revenue growth, Blinkit's net loss widened
to ₹1,190 crore in FY23, reflecting high operational costs.
Operational Excellence: Blinkit processes over a million orders
weekly across 12 to 13 cities, showcasing high operational
efficiency.
Predictive Analytics: Blinkit uses advanced predictive analytics
to manage inventory efficiently, ensuring rapid delivery.
Synergy with Zomato: The partnership with Zomato has
Infrastructure comparision boosted Blinkit's visibility and credibility, enhancing market
penetration.
Store Expansion: Blinkit added 75 new stores in Q4 FY24,
aiming to reach 1,000 stores by FY25, expanding its reach and
operational capacity.
Customer Retention: Blinkit maintains high retention rates,
with regular customers ordering three to four times per month.
Profitability Goals: Blinkit aims to achieve adjusted EBITDA
break-even by the first quarter of fiscal year 2025, focusing on
long-term profitability
Data sourced from various external sources; authenticity may vary—use discretion in interpretation
 "Blinkit's Ascent: A Year-by-Year Market Growth Odyssey"
Key Analysis of Blinkit’s Y-O-Y performance:

Revenue: Blinkit's revenue surged from ₹236 crore in FY22 to ₹724.2

crore in FY23, and further to ₹2,301 crore in FY24, showing a nearly
tenfold increase over two years.
Order Size: The average order value (AOV) increased from ₹553 in Q3
FY23 to ₹635 in Q3 FY24, reflecting a 14% year-on-year growth.
Gross Order Value (GOV): Blinkit's GOV grew from ₹1,749 crore in
Q3 FY23 to ₹3,542 crore in Q3 FY24, a 103% year-on-year increase.
Blinkit Y-O-Y Revenue Analysis Dark Store Across Country Delivery Time: The average delivery time for Blinkit was 12.5 minutes
in March 2024, with 75% of orders delivered within a two-minute
window of the promised time.
Cycle Time: The cycle time, or the time from order placement to
delivery, has been optimized to 12.5 minutes, demonstrating operational
efficiency.
EBITDA: Blinkit's adjusted EBITDA loss improved from ₹227 crore in
Q3 FY23 to ₹89 crore in Q3 FY24, showing significant progress
towards profitability.
AOV versus GOV Net Loss: Despite revenue growth, Blinkit's net loss widened to ₹1,078.9
Order Catered by Blinkit crore in FY23 from ₹996.7 crore in FY22, primarily due to increased
operational costs.
Operational Efficiency: Blinkit achieved a high item fulfillment rate of
Market Share(%)

over 99% and maintained minimal stock-outs, enhancing service

reliability.

Gross order value(GOV)

Store Expansion: Blinkit expanded its store count from 411 in Q3 FY23
to 526 by the end of Q4 FY24, with plans to reach 1,000 stores by
FY25, improving its market reach and operational capacity.
Blinkit Net Loss Analysis Market share versus GOV
Data sourced from various external sources; authenticity may vary—use discretion in interpretation
Decoding the Desi Dash: Blinkit's Masterclass in Indian Consumer Segmentation & Targeting
SEGMENTATION TARGETING

SITUATIONAL
DEMOGRAPHIC

TIME
AGE SENSITIVITY

SEGMENTATION

DEMOGRAPHIC BEHAVIOURAL PSYCHOLOGICAL SITUATIONAL

PURCHASE LIFESTYLE TIME

AGE
BEHAVIOUR SENSITIVITY

LOYALTY
INCOME VALUE OCCASION

seasonal
USAGE INTEREST
OCCUPATION demand
Buyer’s Persona’s

Images used here are AI generated

Mapping Customer Journey....

Images used here are AI generated

From Aisles to Apps: How Q-Commerce Captured & Transformed Traditional Shoppers

Awareness Consideration Decision Delivery Post-Purchase

 "From Click to Doorstep: The Blinkit Customer Journey"

Churn/
Awareness Consideration Decision Delivery Post-Purchase Advocacy
Reactivation

User journey is mapped with Blinkit’s or Q-Commerce Perspective

From Quick Commerce to Enduring Excellence: Blinkit's Roadmap to Sustainable Success
Rearrange
Substitute Rearrange customer feedback processes to better inform product
Substitute current packaging with sustainable alternatives to development and service enhancements.
reduce waste and appeal to environmentally conscious consumers.
Example: Use biodegradable or recyclable packaging materials Implement a real-time feedback system to quickly address customer issues.

Rearrange the operational workflow to improve efficiency

Substitute traditional delivery vehicles with electric and reduce bottlenecks.
vehicles to reduce fuel costs and carbon footprint.
Streamline the order fulfillment process to reduce handling time.
Example: Transition to a fully electric delivery fleet.

Eliminate
Eliminate inefficient delivery practices that increase
operating expenses.
Example: Remove manual processes and implement automated
Combine systems for order processing.
Combine product offerings with local businesses for
Beyond the 10- Eliminate unnecessary costs by negotiating better terms with
exclusive deals and unique product selections. suppliers and optimizing procurement processes.
Example: Partner with local farmers for fresh
Minute Promise:
Example: Bulk purchasing agreements to lower costs.
produce or local artisans for unique products.

Combine delivery services with additional

services like in-app grocery shopping assistance Put to Another Use
or meal planning. SCAMPER Put unused inventory management systems to
Example: Offer meal kits that combine groceries another use by implementing advanced analytics
with recipes for demand forecasting.
Example: Use predictive analytics to optimize stock
levels and reduce wastage
Crafting Blinkit's Lasting Use customer data to develop targeted
Legacy marketing campaigns and personalized offers.
Adapt Example: Analyze purchase history to create
personalized promotions.
Adapt successful techniques from competitors in
the q-commerce space to improve efficiency and
customer satisfaction.
Modify
Example: Implement dynamic pricing models based Modify existing logistics processes to optimize delivery routes and
on demand and supply reduce costs.
Example: Use route optimization software to minimize delivery
Adapt advanced technologies like AI and machine times and fuel consumption
learning for better inventory management and
personalized customer experiences. Modify the app interface to enhance user experience and make
navigation more intuitive.
Example: Use AI to predict customer preferences
and suggest products. Example: Simplify the checkout process and add features like
one-click reordering.