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Blinkit, Zomato’s quick commerce arm, continues to be a major growth driver, with its gross order value (GOV) surging 120% year-on-year (YoY) and 27% quarter-on-quarter (QoQ) in Q3FY25. With over 1,000 stores now operational—achieved a quarter ahead of schedule—the company has set its sights on reaching 2,000 stores by December 2025, a full year ahead of its original target.
Aggressive Growth Strategy
Blinkit’s expansion strategy is underpinned by significant investments in store and warehouse infrastructure. In the past two quarters alone, the company added 368 net new stores (152 in Q2FY25 and 216 in Q3FY25) and expanded its warehousing space by 1.3 million sq. ft., accounting for more than 30% of its total warehousing network.
The company has ramped up digital marketing efforts, particularly to acquire new customers. As a result, monthly transacting customers (MTC) grew to an average of 10.6 million in Q3FY25, indicating strong user adoption. These aggressive investments have led to increased quarterly losses—up by INR 95 crore QoQ—but are seen as a strategic move to solidify Blinkit's market leadership in the long term.
Competition & Market Dynamics
The quick commerce space in India has become highly competitive, with multiple players vying for market share. However, Blinkit’s leadership remains confident that customer preference and execution quality will continue to drive its growth.
“To us, the biggest impact of the intensifying competition has been the acceleration in customer awareness and adoption of quick commerce. We have seen this play out in the early days of the food delivery business as well, when heightened competition led to higher investments in customer acquisition across the industry as a whole. This eventually (disproportionately) benefitted players with sustained good quality execution.”
Albinder Dhindsa, Founder & CEO, Blinkit
Dhindsa further reassured that Blinkit has not seen any attrition of core customers, despite growing competition. He acknowledged that the increased rivalry has temporarily halted margin expansion but remains confident in Blinkit's strong customer retention and business fundamentals.
Future Outlook
Blinkit’s rapid expansion aligns with its parent company Zomato’s overall growth strategy. While food delivery growth was relatively muted at 2% QoQ, quick commerce outpaced all other segments, reinforcing its potential as the next big business vertical.
Zomato CEO Deepinder Goyal also emphasized that reducing delivery times significantly impacts customer demand. The company’s past experiences with food delivery show that shorter delivery times directly translate to increased order volume, a principle that is now shaping Blinkit's strategy.
With an accelerated rollout plan, continued infrastructure investments, and strong consumer demand, Blinkit is positioning itself as a dominant force in India’s quick commerce industry.
