Blinkit Commerce Private Limited, previously known as Grofers, stands as an exemplar in the realm of Indian instant delivery services. Established in December 2013 and headquartered in Gurgaon, this innovative enterprise has redefined the landscape of online grocery shopping. The brainchild of Albinder Dhindsa and Saurabh Kumar, both distinguished alumni of the Indian Institute of Technology (IIT), Blinkit prides itself on a dynamic team that has been instrumental in realizing the company's mission of simplifying online grocery delivery.
Distinguished by its seamless mobile application, Blinkit facilitates customers in over 30 cities across India to order groceries and essentials with unparalleled convenience. The company's operational efficiency is highlighted by its commitment to delivering an astounding 1.25 lakh orders daily, an impressive feat achieved by its dedicated workforce.
In November 2021, Blinkit garnered significant attention by securing a total of $630 million in funding from renowned investors such as SoftBank, Tiger Global, and Sequoia Capital. This financial backing not only underscores Blinkit's market prominence but also fortifies its position as a frontrunner in the fiercely competitive instant delivery sector.
Notably, in 2022, Blinkit underwent a transformative acquisition by Zomato in an all-stock deal amounting to a substantial $568 million. This strategic move further solidifies Blinkit's standing in the market and positions it for continued growth under the umbrella of a dynamic conglomerate.
Beyond its financial prowess, Blinkit's operational finesse is underscored by its unique proposition—delivery within an impressive 10-minute timeframe. The company caters to a diverse array of daily needs, spanning groceries, bakery items, baby care products,cosmetics ,gifting items and more. Operating under the new moniker, Blinkit, the enterprise now extends its services to more than 30 cities in India.
With a valuation soaring to an impressive $1.01 billion, Blinkit stands as one of the esteemed Unicorn companies in India, a testament to its unwavering commitment to excellence. In essence, Blinkit has emerged not merely as a grocery delivery platform but as a trailblazer, reshaping the contours of the e-commerce landscape in India.
The India online grocery market size was valued at USD 2.9 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 37.1% from 2021 to 2028. The market has gained immense traction over the past months on account of the changing lifestyle of the consumers, growing urbanization, and the tech-savvy generation who prefers buying products online. With the growth in disposable incomes and busier lifestyles, people are increasingly seeking out customizable and convenient online platforms for grocery shopping instead of walking down to the neighborhood vendors. The preference for online delivery of grocery products became more visible following the COVID-19 outbreak. With the social distancing standards, consumers are turning their focus to online grocery shopping, which is not only convenient but is a safer option. Â
Key points :
Company Name – Blinkit
Founded – Dec 2013
Founders – Saurabh Kumar, Albinder Dhindsa
Valuation – $1.01 Billion
Revenue - $302 Million
Industry – E-commerce, Online Shopping, Grocery Delivery
Area Served – India
Parent Organization – Grofers International Pvt. Ltd.
Blinkit – Founders and Team
Albinder Dhindsa –
Albinder is the CEO and co-founder of the coampny. He holds a degree in B.Tech from IIT, Delhi and an MBA degree from the Columbia Business School.
Saurabh Kumar –
Saurabh is the co-founder of Blinkit. He holds a B.Tech degree in Civil Engineering from IIT Bombay and an MS in Transportation Engineering from The University of Texas, Austin.
Brand Name –
The brand name of the company is 100% appropriate for the kind of business they do. They deliver groceries to their customers within a blink of an eye and hence the name, Blinkit. It is quite an impressive name that resonates with the business beautifully.
Tagline –
The company’s tagline is – Let's Blink it.
ABOUT THE FOUNDERS-
Albinder Dhindsa
Albinder Dhindsa is one of the founders and the CEO of Blinkit (ex- Grofers). Dhindsa is an alumnus of the Indian Institute of Technology, Delhi, after which he completed his MBA from the Columbia Business School. Dhindsa first started his career as a Transportation Analyst at URS Corporation, after which he worked with Cambridge Systematics and UBS Investment Bank as an Associate and Senior Associate. Dhindsa then joined Zomato where he worked for more than 2.5 years as the Head of International Operations. He eventually left the company to co-found Grofers (now Blinkit) in December 2013.
Saurabh Kumar  Â
Saurabh had been another founder of Grofers. He was a B.Tech, Civil Engineering student of IIT Bombay. He eventually went for an MS, in Transportation Engineering that he completed from The University of Texas at Austin. Saurabh also worked with Cambridge Systematics where he first met Albinder. Kumar left the company to work as an Associate and a COO in two different companies - Opera Solutions and Rasilant Technologies Pvt Ltd., finally founding Grofers/Blinkit with Albinder, which came live with its app in December 2014. Saurabh had left Grofers on June 18, 2021. Kumar next founded Warpli, an e-commerce platform that is often tagged as the "e-commerce of future" in September 2021. As per the latest news, Kumar's newly founded startup is planning to expand quick commerce into the turf of Amazon, Nykaa, and their likes.
Jacob Singh was the CTO of Grofers, who stepped down from the company and his position in July 2020. He largely contributed to the design, launch, and scaling of Grofers' paid loyalty program. A Berkeley City College graduate, Singh worked with Acquia as a Country Head before joining Grofers and is now serving as a CTO in residence at Sequoia Capital.
START UP STORY - How it Started ?
Albinder, after his graduation, worked as a transportation analyst at URS Company in the USA. While working he met Saurabh Kumar and kept in touch with him with absolutely no intentions of any entrepreneurial motives.
Both Albinder and Saurabh found that there was a huge gap in the delivery industry. They both thought to tap the opportunity as it was a time when many startups were emerging. They felt the need to sort the unorganized hyperlocal space in the transaction made between merchants and consumers.
That is when they started to build a base for their startup. Their idea was to provide a one-stop solution for the customers' local delivery needs by having on-demand pickup and drop services. This was to facilitate the logistics from the shops around their locality like grocery stores, medical stores, and restaurants for the consumers. Initially, both of them also facilitated the delivery of groceries for customers from the neighbourhood stores and supermarkets.
Blinkit Business Model
The company follows a unique business model that has been ensuring its growth and success in the industry. Blinkit operates on a marketplace model, connecting customers with nearby retail stores. They have raised a total of $442.5 million from investors like Tiger Global, SoftBank, and Sequoia Capital and have a revenue of $34 million. The company is present in over 30 cities in India and is striving to stay competitive against giants like Amazon and BigBasket.The core of their business is technology and operations, and they aim to expand into new cities and verticals such as cosmetics, pharmacy, and electronics. Blinkit has been facing the challenge of changing user behavior from going to local shops for daily needs to using their app for on-demand delivery. However, they are working to build trust among users and create a shift in shopping behavior. Blinkit’s business model is based on charging local vendors a per-order commission that is primarily percentage-based. This unique approach has been helping the company to attract local stores, users, delivery staff, and local vendors to its platform.The global e-commerce market is recorded at $16.6 trillion in 2022, and Blinkit is striving to stay competitive by constantly improving its services. The company may merge with or be acquired by one of its competitors like Amazon or BigBasket in the future.Â
Here are key elements of Blinkit's business model:
Marketplace Model:
Connection between Customers and Local Stores:Â Blinkit facilitates transactions between customers and nearby retail stores, acting as a platform for on-demand delivery services.
Funding and Revenue:
Investment:Â Blinkit has successfully raised a total of $442.5 million in funding from prominent investors including Tiger Global, SoftBank, and Sequoia Capital.
Revenue Generation:Â The company generates revenue through a unique approach, charging local vendors a per-order commission, typically structured as a percentage.
Geographical Presence:
City Expansion:Â Blinkit has a wide operational footprint, being present in over 30 cities across India. The company aims to expand its reach further into new cities.
Technology and Operations:
Core Business Focus:Â The core of Blinkit's business revolves around technology and efficient operational processes. This emphasis on technology helps enhance the overall customer experience.
Diversification:
Vertical Expansion:Â Blinkit has strategic plans for diversification, aiming to explore new verticals such as pharmacy, and electronics. This indicates a broader scope beyond traditional grocery delivery services.
User Behavior and Trust Building:
Shift in Shopping Behavior:Â Blinkit acknowledges the challenge of changing user behavior, where consumers are transitioning from local shops to app-based, on-demand delivery services.
Trust Building:Â The company is actively working on building trust among users to influence a positive shift in shopping behavior.
Competitive Landscape:
Competition with Giants:Â Blinkit operates in a competitive market, contending with major players like Zepto, Swiggy, Amazon and BigBasket. The company is focused on staying competitive and continually improving its services.
Future Speculation:
Potential Merger or Acquisition:Â Given the dynamic nature of the industry, there is speculation about Blinkit potentially merging with or being acquired by major competitors like Amazon or BigBasket in the future.
In summary, Blinkit's business model centers around its role as a marketplace connecting customers and local vendors, with a focus on efficient operations, technology integration, revenue generation through vendor commissions, and plans for geographical and vertical expansion. The company is attuned to the evolving market trends and actively working on strategies to stay competitive in the rapidly changing landscape of the e-commerce industry.
Marketplace Model
The company operates as an intermediary between customers and local grocery stores. Customers can place their orders on Blinkit’s app or website, and the company’s delivery agents pick up the orders from local stores and deliver them to the customers within 10 minutes.
This model provides several benefits to customers, such as a wide range of products to choose from, competitive pricing, and quick delivery. On the other hand, local grocery stores benefit from Blinkit’s platform as they can reach a wider customer base and generate more revenue through commissions on each order.
Quick Delivery
Blinkit’s focus on quick delivery is another crucial aspect of its business model. The company has made a promise to deliver orders within 10 minutes, which is a significant selling point for customers who value speed and convenience. This promise has helped Blinkit gain a competitive edge over its rivals.
To ensure quick delivery, Blinkit has developed a robust logistics network that comprises delivery agents, local stores, and a central warehouse. The company’s delivery agents use electric bikes to navigate through traffic and deliver orders quickly. Blinkit’s logistics network also allows it to optimize delivery routes and reduce delivery times.
EBITDA-
The financial performance of Blinkit changed significantly between FY22 and FY23. The EBITDA margin increased from -398.23% Â in FY22 to -119.79% Â in FY23 as a result of lower expenses as a percentage of operational revenue, but the Return on Capital Employed (ROCE) remained negative, despite a minor improvement. Despite the fact that ROCE is still an issue for the organization, these data point to ongoing efforts to improve operational efficiency and cut losses.
Obstacles faced by the company -
 Unsuccessful Operations –
Blinkit had to face unsuccessful operations in various major cities. Due to this, it had to shut down its operation in Bhopal, Kochi, Visakhapatnam, and many others.
Huge Discounts –
The strategy of offering huge discounts to its customers is backfiring the company now. They have already invested more than INR 600 Cr. In the past 3 – 4 months for their business’s growth and now they are looking to cut costs, thereby reducing their cash burn.
Backlashes –
Blinkit had to face various backlashes in the past few months. Many critics didn’t support their 10-minute grocery delivery service as they call it an exploitation of their employees. Blinkit also sacked around 5% of its employees in major cities like Mumbai, Kolkata, and Hyderabad. They have also been reported in the delayed payment of many vendors.
Competitors –
Blinkit is however one of the top players in the market, it still has various competitors. Some of them are growing at a good speed and they have a good customer base as well.
Quality Issues & Delayed Service –
Blinkit had to face various criticism due to its delayed service and quality issues. It is one of the major challenges of the company to provide top quality service to its customers.
Competitors-
Many big brands and supermarkets are slowly focusing on selling online. This increases the competition between e-commerce platforms. Some of the top competitors of the company are as follows:
 BigBasket
Zepto
Pepper Tap
Swiggy
Zopnow
JioMart
Dunzo
Nature’s Basket
Amazon
Blinkit is working on a ton of exciting plans for the future. Several of the plans include the following:
· After Amazon and Bigbasket, Blinkit claimed to have 13% of the market, developing it as the third online platform for grocery delivery.Â
· They'll soon grow their company and begin offering services in several new locations.
·The main objective of Blinkit is to dominate the Indian market for grocery delivery services.
· Over the next five years, Blinkit wants to multiply by 100 its current size.
ACQUISITION BY ZOMATO-
After extensive discussions and negotiations, Blinkit was acquired by Zomato, a popular foodtech company led by Deepinder Goyal. The Blinkit acquisition was approved by Zomato’s board on June 24, 2022, in an all-stock deal worth $568 million. The acquisition involved the purchase of equity shares from Blink Commerce Pvt Ltd shareholders, amounting to Rs 4,447.48 crore ($569 million). Blinkit’s earlier valuation of $1 billion underwent a 43% reduction. As part of the deal, Zomato Hyperpure, the B2B arm of Zomato, acquired BlinkIt’s B2B business, Hands on Trade Private Limited (HOTPL), including warehousing and ancillary services, for Rs 60.7 crore.
SWOT Analysis-
Blinkit’s SWOT analysis highlights the company’s strengths, weaknesses, opportunities, and threats. The company’s strengths include its innovative business model, user-friendly platform, and reliable service providers. The weaknesses include competition from other service providers and the company’s limited geographic reach. The opportunities include expanding to new markets and offering new services. The threats include changes in the regulatory environment and economic downturns.
Companies like Blinkit can influence consumer behavior, local businesses, and the job market in several ways:
1. Consumer Behavior:
·       Convenience and Speed: Blinkit's focus on quick, on-demand delivery appeals to consumers seeking convenience. This can shift consumer behavior towards online platforms for daily needs, as it offers a faster and more efficient alternative to traditional shopping.
·       App Adoption: Companies like Blinkit often encourage the adoption of mobile applications for shopping. This influences consumers to use technology for their daily purchases, contributing to the growing trend of app-based shopping.
·       Product Variety: By offering a diverse range of products, including groceries, baby care items, fruits, and more, Blinkit can influence consumers to consolidate their shopping needs in one platform, reducing the need for multiple trips to different stores.
·       Promotions and Discounts: Marketing strategies such as promotions and discounts can attract price-sensitive consumers and encourage them to choose Blinkit over other options.
2. Local Businesses:
·       Market Access: Blinkit's marketplace model connects local vendors with a broader customer base, providing local businesses with increased market access and potential for higher sales.
·       Digital Presence: Local businesses partnering with Blinkit can enhance their digital presence. This is crucial in an era where online visibility can significantly impact a business's success.
·       Commission-Based Revenue: Blinkit's commission-based revenue model may incentivize local businesses to join the platform, tapping into Blinkit's customer base while paying a fee for the service.
·       Competition and Innovation: The presence of Blinkit and similar platforms in the market may encourage local businesses to innovate and improve their services to remain competitive.
3. Job Market:
·       Delivery Jobs: The growth of platforms like Blinkit can lead to increased demand for delivery personnel, creating job opportunities in the local job market.
·       Tech and Operations Jobs: The emphasis on technology and operations within Blinkit's business model may create job opportunities in these sectors, attracting talent with skills in these areas.
·       Customer Support and Logistics Jobs: With the expansion of services and geographical reach, there may be a need for additional staff in customer support and logistics, contributing to job creation.
·       Indirect Employment: The growth of local businesses facilitated by platforms like Blinkit can have indirect effects on employment, as these businesses may need additional staff to meet increased demand.
PESTEL Analysis-
A PESTEL analysis provides a comprehensive overview of the macro-environmental factors that can influence a company like Blinkit. Here's an analysis of the Political, Economic, Social, Technological, Environmental, and Legal factors affecting Blinkit:
1. Political Factors:
Regulations and Policies:Â Compliance with governmental regulations, especially in the e-commerce and delivery sectors, is crucial. Any changes in regulations regarding online platforms, data protection, or delivery services can impact Blinkit.
Political Stability:Â Stability in the political environment is essential for consistent business operations. Political instability or changes in government can create uncertainties that may affect Blinkit's operations.
2. Economic Factors:
Consumer Spending:Â Economic conditions influence consumer spending. Economic downturns may lead to reduced spending on non-essential items, impacting Blinkit's sales.
Inflation and Exchange Rates:Â Fluctuations in inflation rates and exchange rates can affect the cost of operations, especially if Blinkit sources products internationally or relies on imports.
Income Levels:Â The economic well-being of the population, including disposable income levels, can impact the purchasing power of consumers and, consequently, their use of Blinkit's services.
3. Social Factors:
Consumer Behavior:Â Social trends and cultural shifts influence consumer behavior. An understanding of these trends helps Blinkit tailor its services to meet changing consumer preferences.
Lifestyle Changes:Â Changes in lifestyle, such as an increased focus on convenience or a preference for online shopping, can directly impact the demand for Blinkit's services.
Demographics:Â Understanding the demographics of the target market, including age, income, and urbanization trends, is crucial for Blinkit's marketing and service customization.
4. Technological Factors:
Innovation:Â Advancements in technology impact Blinkit's operations. Embracing new technologies, such as improved delivery tracking or enhanced mobile applications, can provide a competitive edge.
Automation:Â The use of automation, robotics, and artificial intelligence in logistics and operations can enhance efficiency, reduce costs, and improve service quality for Blinkit.
Data Security:Â Given the nature of online transactions, ensuring robust data security measures is essential to maintain customer trust and comply with data protection regulations.
5. Environmental Factors:
Sustainability:Â Increasing awareness of environmental issues may influence consumer preferences. Blinkit's commitment to sustainability and eco-friendly practices can enhance its brand image.
Logistics Efficiency:Â Environmentally conscious logistics practices, such as optimized delivery routes and eco-friendly packaging, can contribute to Blinkit's overall environmental impact.
6. Legal Factors:
Regulatory Compliance:Â Adherence to local and international laws governing e-commerce, data protection, and consumer rights is critical for Blinkit to avoid legal issues.
Contractual Agreements:Â Legal aspects of contracts with vendors, partners, and employees need to be carefully managed to ensure smooth business operations.
Intellectual Property Protection:Â Protecting Blinkit's intellectual property, including its technology and brand, is crucial to prevent unauthorized use and maintain a competitive advantage.
In conclusion, Blinkit stands as a shining beacon in the realm of Indian e-commerce, epitomizing the evolution of convenience and efficiency in online grocery delivery. From its humble beginnings as Grofers to its current stature as a Unicorn company with a valuation exceeding $1 billion, the journey of Blinkit is a testament to the vision and determination of its founders, Albinder Dhindsa and Saurabh Kumar.
The company's unwavering commitment to simplifying the online grocery shopping experience has not only garnered immense popularity among consumers but has also attracted substantial investments from industry giants like SoftBank, Tiger Global, and Sequoia Capital. The strategic acquisition by Zomato in 2022 further solidifies Blinkit's position in the market, promising a future of continued innovation and growth.
Blinkit's unique approach, marked by a lightning-fast 10-minute delivery promise and an extensive range of daily essentials, has resonated with customers across more than 30 cities in India. The mobile application's user-friendly interface has empowered customers to seamlessly order groceries and necessities, bringing unparalleled convenience to their doorsteps.
As Blinkit continues to redefine the landscape of on-demand grocery delivery, its journey serves as an inspiration for aspiring entrepreneurs and a testament to the transformative power of technology in enhancing our day-to-day lives. With a dynamic team steering the ship and a strategic alliance with Zomato, Blinkit is poised to remain at the forefront of India's rapidly evolving e-commerce scene, offering a glimpse into the future of instant, efficient, and customer-centric online shopping experiences.