Albinder Dhindsa said that the company’s razor sharp focus on customers would help it offset any competition from new entrants
This comes close on the heels of reports saying that parent Zomato was mulling raising INR 9,000 Cr via QIP
The comments come at a time when the quick commerce space is witnessing intense competition with the entry of new players such as Flipkart Minutes, BigBasket and JioMart
Zomato-owned Blinkit’s cofounder and CEO Albinder Dhindsa reportedly said that the quick commerce major is not concerned about new competitors entering the market.
Dhindsa hinted that there is enough space for everyone, adding that Blinkit would continue to focus on customers, Economic Times reported.
“We are not too worried about competition entering the space. The space is not small. We provide customers with a service they didn’t know they needed. We will stay focused on the customer,” Blinkit CEO said at the India Mobile Congress 2024.
On the same day, Blinkit’s parent Zomato said that its board would consider raising funds by issuing equity shares via qualified institutional placement (QIP) at its upcoming meeting on October 22.
While the company did not disclose the quantum of the funding, reports claimed that the foodtech major is eyeing raising INR 9,000 Cr, which is expected to further fuel its quick commerce vertical.
Blinkit clocked INR 942 Cr in revenue in the first quarter (Q1) of the fiscal year 2024-25 (FY25), up nearly 2.5X from INR 384 Cr during the same period last fiscal.
In a bid to further bolster the bottomline, the quick commerce platform now plans to increase its total dark store count to 2,000 by the end of 2026. Zomato announced plans to pump INR 300 Cr in Blinkit in June 2024 but scaling up the venture amid rising competition will likely require much more capital than that.
Dhindsa’s comments come at a time when the quick commerce space is witnessing intense competition. While ecommerce juggernaut Flipkart debuted its “10-minute” delivery service recently to take on the incumbents, the likes of Tata-owned BigBasket and Reliance-backed JioMart also recently announced their quick commerce foray.
Meanwhile, Swiggy, which operates Instamart, is eyeing an initial public offering (IPO) by the end of the year, which could see the Bengaluru-based foodtech raise big bucks to further bolster its quick commerce operations.
On similar lines, Zepto has raised more than $1 Bn in the past few months and was valued at a massive $5 Bn during its last fundraise. Additionally, the company is also said to be in advanced talks with Motilal Oswal, high-net-worth individuals (HNIs), and family offices to raise another $100 Mn.
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