The fast-paced world of India's quick commerce sector is bracing for a potential correction, according to Albinder Dhindsa, CEO of Blinkit. In a recent interview, Dhindsa cautioned that the current business model, heavily reliant on continuous fundraising and significant losses, is approaching its limits.
Dhindsa highlighted the inherent imbalance in the market, where companies are prioritizing aggressive expansion over sustainable financial practices. He noted that the industry is entering a phase where companies must confront how long they can sustain heavy losses in pursuit of scale. "Usually when this kind of imbalance exists, the correction is very swift," he stated. He also added that such shifts often catch companies off guard.
The Indian quick commerce market has attracted substantial investments from global players like SoftBank, Temasek, and Middle Eastern sovereign wealth funds, totaling over $5 billion since 2021. These investments have fueled the rapid expansion of 10-minute delivery services for groceries, essentials, and even electronics. While similar models have struggled in the US and Europe, India's dense urban areas, lower labor costs, and widespread digital payments have allowed domestic players to sustain growth for a longer period.
However, investor caution is rising as the funding needs of major players continue to increase. Competitors like Swiggy and Zepto have raised significant capital, underscoring the ongoing cash requirements for maintaining rapid delivery services. Zepto, for instance, raised $450 million at a $7 billion valuation in 2025. This environment is pushing companies to explore strategies beyond aggressive discounting, as Dhindsa learned from past challenges at Grofers where steep discounts boosted demand but hurt economics. "We will not chase growth for the sake of growth," Dhindsa stated, emphasizing a focus on the long-term interests of the business.
Analysts suggest that the next phase of quick commerce may involve consolidation, sharper category choices, and more disciplined discounting. Despite these challenges, Blinkit has solidified its position in the Indian market, holding over 50% market share. The company has also been focusing on improving its unit economics and has a strong cash reserve. In March 2024, Blinkit turned adjusted EBITDA positive, although margins still fluctuate. Recent moves, such as Blinkit securing ₹600 crore from parent Eternal for expansion and the rollout of 10-minute delivery for Lenskart powered glasses, highlight the company's continued efforts to innovate and expand its offerings.
Looking ahead, Blinkit is focusing on strengthening its supply chain by shifting procurement towards local entrepreneurs and investing in local infrastructure as demand expands to smaller towns. Despite current unprofitability due to ongoing expansion into new markets, Blinkit aims to maintain its market leadership and adapt to the evolving dynamics of India's quick commerce sector.
