Putting in an order for groceries was once considered the most difficult task. Shopping for groceries is becoming more pleasurable because of the development of “smart grocery stores” like Nature’s Basket, Dmart, Reliance Mart, and others. But now that technology is driving more solutions, online grocery shopping is becoming increasingly popular. Blinkit is one of the players that has risen to the top in this field. An Indian grocery delivery business that operates on demand. Blinkit (formerly Grofers) has simplified people’s lives by bringing a vast array of products right to our front doors. Subsequently, the company changed its name to Blinkit and adopted the slogan “Let’s Blink It.” This includes food, baked goods, baby necessities, and more.
Launched in December 2013, Blinkit is spearheading the use of innovative technologies to revolutionize India’s massive unorganized grocery market. The Blinkit platform, which is based on a proprietary stack of technologies, brings together shoppers in need of common necessities, retailers who can meet those requirements, and manufacturers seeking a way to reach shoppers throughout the country. The technology developed by Blinkit, co-founded by Albinder Dhindsa and Saurabh Kumar, is well suited to meet the needs of India’s rapidly expanding urban population and the additional 100 million or so people who have not yet shopped online.
The foundation of Blinkit is the marketplace model. It lacks any autonomous marketplaces or storage facilities. Instead, delivery people are sent by the corporation to collect the necessary supplies from several nearby shops and grocery stores. The customers’ orders are subsequently fulfilled by the delivery boys.
Through its tie-up mechanism, Blinkit can swiftly transport consumers’ orders submitted through its app or website to neighboring supermarkets. Blinkit makes money from these orders since the company charges a commission. The core elements of Blinkit’s business model are regional suppliers, regional clients, and delivery personnel.
Blinkit Business Model Canvas
Blinkit operates on a marketplace-based business model that connects local stores with nearby customers through its app and website. It earns primarily through commissions on orders, delivery fees, and advertisements. Below is the Blinkit Business Model Canvas summarized:
Blinkit Business Model Canvas
1. Key Partners of Blinkit
Local grocery stores and supermarkets
Delivery personnel
Advertising brands
2. Key Activities of Blinkit
Managing the app/website platform
Order processing and logistics coordination
Partner onboarding and support
Running targeted ad campaigns
3. Key Resources of Blinkit
Blinkit mobile app and website
Delivery workforce
Partner network (local suppliers)
Brand reputation for quick delivery
4. Value Propositions of Blinkit
Ultra-fast delivery (“within the blink of an eye”)
No need to visit stores physically
Easy-to-use ordering and tracking app
Convenience for urgent grocery needs
5. Customer Relationships of Blinkit
App-based customer support
Real-time order tracking
Personalized offers and ads
6. Channels of Blinkit
Blinkit mobile app
Blinkit website
7. Customer Segments of Blinkit
Urban households
Busy professionals
Students and bachelors needing quick deliveries
8. Cost Structure of Blinkit
Delivery partner payouts
App and tech maintenance
Advertising and marketing expenses
Partner management and operations
9. Revenue Streams of Blinkit
Marketplace commission (54.10% of revenue)
Delivery charges (21.47% of revenue)
Advertising fees from brands promoted on the platform
How Blinkit Makes Money | Blinkit Revenue Model
As stated earlier, the company earns heavily through its online orders, there are other earning sources as well from where now company has started minting money. Following are the revenue streams that encompass Blinkit’s revenue model:
Marketplace Commission from Online Platforms: Online orders make up the bulk of Blinkit’s sales, accounting for 54.10% of the company’s total revenue.
Delivery Services: The company charges certain commissions or delivery charges on each customer’s delivery. The delivery partner receives a portion of the commission while the company retains the remaining portion. The yearly income of the company is around 21.47 percent generated by this model.
Advertisement Services: Blinkit has quickly become one of the most popular online grocery shopping platforms, and it continues to rank among the industry’s leaders. The company has also taken advantage of this potential by implementing a business strategy in which it promotes specific companies on its website in exchange for payment.
Blinkit Revenue
In Q2 FY25, Blinkit reported a revenue of INR 1,156 crore, more than doubling from INR 505 crore in the same period last year. However, its adjusted EBITDA loss increased to INR 8 crore, up from an INR 3 crore loss in the June quarter. Additionally, Blinkit’s gross order value (GOV) surged by 122% year-on-year to INR 6,132 crore.
Blinkit’s revenue grew significantly from INR 747 crore in FY23 to INR 1,934 crore in FY24, driven by strong growth in operations.
USP of Blinkit
Delivery Within the Blink of an Eye: With this incredibly quick service, customers won’t even need to plan their grocery list. Did you forget to include a component in your dinner? Do you require a snack on the go? Blinkit responds lightning-fast to these urgent demands. This makes it a very handy option to go to.
Accessibility at Your Seated Pleasure: With the Blinkit app, customers can quickly browse inventory, place orders, and monitor their deliveries. The need to physically go to a store and wait in checkout lines has become irrelevant by this.
Analysing the Future
Blinkit may have been the investor favorite for a long time, but it is far from alone. Internet sales are becoming more important to many large enterprises and grocery stores. Because of this, competition among eCommerce platforms is increasing. Zopnow, Dunzo, Zepto, and many more delivery partners are preparing to dominate the industry. Therefore, for Blinkit to maintain its lead, it must perform exceptionally well.
FAQs
What is Blinkit?
Blinkit is an on-demand online grocery delivery service that was founded in the year 2013. This eCommerce startup platform provides a variety of daily needs products ranging from groceries, bakery items, baby care items, and many more to its customers. Blinkit is a Gurugram-based company that is currently present in 26 cities across the country.
How does Blinkit make money or what is revenue model of Blinkit?
The main revenue streams of Blinkit include Marketplace Commission from Online Platforms, Advertisement Services, and Delivery services.
Is Blinkit acquired by Zomato?
Yes, in 2022, Zomato acquired Blinkit for $569 million.
Who is the CEO of Blinkit?
Albinder Dhindsa is the co-founder and CEO of Blinkit.
What is the business model of Blinkit?
Blinkit follows a marketplace model, connecting local grocery stores with customers through its app. It earns mainly from commissions on orders, delivery charges, and brand advertisements.
How Blinkit works?
Blinkit works by receiving customer orders via its app or website, then assigns delivery partners to pick up items from nearby stores and deliver them quickly, often within minutes.
Blinkit (or what some of us remember it as – Grofers) has been one of the biggest eGrocery game-changers in the Indian market. Launched by Albinder Dhindsa and Saurabh Kumar in 2013, Grofers started as a simple online grocery delivery service that catered to urban clients looking for easy home delivery options.
For many years, Grofers operated mainly as a traditional grocery platform, just like BigBasket. However, as competition grew and customer expectations evolved, the team realized that it was time to change their strategy.
So, they not only changed up their entire brand identity but set themselves up as a strong contender in the market. In 2022, Zomato acquired Blinkit for $569 million and entered the eGrocery game with this successful venture.
When Grofers/Blinkit entered the Indian market in 2012, the eGrocery landscape was still in the development stage. Online shopping was growing but the grocery sector faced a challenge – Indian customers wanted fresh produce from local providers at the convenience of their own homes, but the trust in online grocery delivery was very low.
Even though faced with so many challenges, Grofers still tapped into the niche market of urban users who wanted convenience rather than going to the market. By 2021, the eCommerce market started growing in waves.
So, to stay relevant and move with the people’s need for speed, Grofers rebranded themselves as Blinkit and offered delivery within 10 minutes, a concept never seen before. This rebranding was not a simple name change but a strategic shift of their entire business model.
But why the sudden change?
The decision for the strategic shift was based on two factors:
Consumer behavior was shifting more towards instant gratification, especially in urban cities
The pandemic amplified the need for reliable and speedy delivery services
However, they also faced challenges in terms of space, technology, and product requirements. Here, the company used a more strategic approach:
Blinkit set up micro-warehouses in densely populated areas to stock essential products
Invested in technology for optimization of delivery routes so that drivers reached customers faster
Partnerships with local stores and suppliers to minimize operational costs
These simple strategies helped position Blinkit as a leader in the instant delivery space in India and caused an uproar with its competitors.
Blinkit is known for its wide range of products and delivery within 10-minute promise, but what are its main activities that helps customers get their delivery faster.
Fulfillment of Order: At the heart of Blinkit’s business strategy is their order fulfillment process. Once the order is placed, it is processed from a local store. The order is then packed and dispatched, where a delivery agent delivers it to the customer. The brand has strategically set up fulfillment centers that are located in urban areas for quick and easy dispatch.
Managing Inventory: Management of inventory is another main activity for Blinkit. With advanced analytics that help predict demands and track stock levels, to ensure items are readily available.
Customer Support: The center of Blinkit’s strategy is its exceptional customer support. It ensures that queries and complaints are addressed promptly in 24/7 via phone call, chat and email.
Blinkit mostly has a franchise model by partnering with local businesses to stock up on their products. This strategy not only empowers small to medium retailers but also ensures that they have a larger variety of products available on hand. Blinkit has connections with over 2500 local stores across Tier-1 and Tier-2 cities to create a strong network.
Blinkit taps into the local distribution channels that provide quick inventory turnover and help reduce waste. For local store owners, this is a win-win as they are adapting to the change in online shopping, and they are creating a community where everyone benefits from the sale.
Their marketing strategy works closely with retailers and suppliers to guarantee customers the best and freshest items. With strict quality checks in place, the brand ensures that all the products their customers receive are up to standard.
But their biggest heroes are the delivery partners. Blinkit has 20,000 delivery partners across multiple cities, that makes it one of the most efficient delivery services across pan India.
Blinkit’s revenue model is based on 4 main aspects:
Sales Revenue: The sales of groceries is the main source of revenue for Blinkit. They purchase products from whole sellers and nearby retailers to store in their warehouses. This can maintain quality and keep prices low or high based on their direct-to-customer strategy.
Delivery fees: Another source of income for Blinkit is delivery fees. Certain customers are eligible for free delivery, but others might have to pay extra for speedy delivery. Using this marketing strategy, Blinkit not only meets their client demands but also makes money from delivery options.
Subscriptions: Blinkit also has membership services that provide customers the option to pay a monthly cost in exchange for special discounts and free delivery. This not only promotes loyalty but also generates income.
Brand Collabs and Promos: Blinkit works with multiple brands to highlight their products, which is another major source of income.
Key Partners of Blinkit
Blinkit has a collaborative ecosystem where every player reaps the benefits from the joint efforts.
Local sellers: Blinkit collaborates with local grocery stores and this allows them to stock products fast and reduces delivery time. This also supports their revenue model, where Blinkit can provide a wide range of products to their customers. This helps empower the community and ensures that customers have fresh produce.
Technology partners: Blinkit collaborates with tech companies to improve their apps to ensure that the user experience is not broken. By constantly updating their platform, such as making their payment gateways more secure or making their shopping experience smoother, they ensure a high rate of customer satisfaction.
Logistics Company: Blinkit has a fast delivery process thanks to its logistics collaborations. With enough data analytics, the brand can predict peak times and allocate resources to ensure a faster delivery option.
Blinkit’s STP Analysis
Blinkit is one of the leading eGrocery delivery partners across pan India that mainly focuses on Tier-1 cities. Their STP analysis is:
Segmentation: Blinkit focuses mainly on cities with high internet options that help support their speedy delivery model. Demographically, the brand targets young tech-savvy individuals and families that do not have the time to go grocery shopping. Behaviorally, their customers are those who realize they need some essentials on short notice and are willing to pay to have them delivered to their doorstep instead of stepping out to buy them,
Targeting: Blinkit targets mainly Tier-1 cities where the maximum number of people live. But this is for cities with the right infrastructure to support their speed-based model. The target audience is mainly office-goers, young families and college students. Mainly people who are trying to juggle multiple tasks and will pay a little bit more for a doorstep service.
Positioning: The brand has positioned itself as the go-to platform for the delivery of daily items. Its main emphasis is speed and convenience with a promise to deliver in 10 minutes.
Now that we understand the brand’s STP analysis, it is time to take a look at its SWOT Analysis:
Strength
Blinkit’s major strength lies in its strong brand recognition. The name itself conveys speed and efficiency that connect perfectly with their business model. Also, their extensive delivery partners allow them to live up to the promise of 10-minute delivery in every major city across India.
Weaknesses
Their biggest weakness is the high operational costs involved with maintaining such an active network for quick deliveries. This expense includes logistics, workforce, and technology that is required to execute the operations smoothly.
Opportunities
One major opportunity that Blinkit has is the possibility of expansion into Tier-2 and Tier-3 cities. With the growth and penetration of the internet and smartphones across India there is a ripe market that is yet to be tapped. Also, Blinkit can diversify its products by expanding into the electronics and pharmacy sectors as well.
Blinkit continues to face significant threats from other major delivery partners such as Zepto, Swiggy Instamart, and BigBasket.
Blinkit’s Competitor Analysis
Before we take a look at Blinkit’s marketing mix, we need to take a closer look at their competitors:
BigBasket: A Tata Group undertaking, BigBasket is one of Blinkit’s biggest competitors. But due to their longer delivery times, Blinkit still has a bigger share in the eGrocery space.
Swiggy Instamart: By utilizing Swiggy’s extensive delivery network, Instamart is becoming a major player in this space. With their efficient logistics and strong brand recognition, they are a formidable contender for Blinkit.
Zepto: A newbie in the industry, Zepto has become very popular and is a direct competitor to Blinkit. With its hyper-focus on delivery in 10 minutes, it has become very popular in eGrocery.
Dunzo: Known for its versatility in delivery options, Dunzo has not only groceries but also medicine delivery options in some areas.
Blinkit’s biggest competitive advantage is its focus on hyperlocal eGrocery delivery.By prioritizing speed and efficiency, the brand has become a go-to platform for delivery of essentials.
Understanding Blinkit’s Marketing Mix
Blinkit has extensively used their previously collected knowledge about customer wants and built their brand to not only fulfill their customer demands but also to bridge the gap between local sellers and buyers as well. Their 4P’s of marketing include:
Product
Blinkit provides a wide variety of products that include groceries, fresh produce, personal care items, dairy products, and even household essentials. They aim to meet the instant gratification demands of urban consumers within minutes and are highly appealing to young families, professionals, and students.
Pricing
Its products are in line with other major eGrocery platforms, ensuring that their customers do not have to pay premium pricing for speedy delivery. It offers discounts, promotions, and deals to engage existing customers and bring in new ones. Their loyalty program also helps increase a strong customer base.
Place
Their distribution strategy follows a hyperlocal delivery model concept. They operate through micro-fulfillment centers that are within a 3 km radius of the delivery location which helps them maintain a speedy turnaround time. Presently, the company has over 639 stores across 22 cities.
Promotion
The brand’s promotional strategy is geared towards digital marketing. One of their most famous campaigns was #IndiaKaLastMinuteApp, which positioned the brand as the go-to app for all last-minute buyers. They also have a strong social media presence with over 251K followers on Instagram. Their strategies are also targeted towards millennials and Gen Z.
Social Media Campaigns That Worked for Blinkit
Zomato-Blinkit Billboard Wordplay: Blinkit collaborated with Zomato for an ad campaign with slogans for billboards. Blinkit’s line was “Doodh mangoge, doodh denge” (Ask for milk, we deliver milk), while Zomato’s billboard read “Kheer mangoge, kheer denge (Ask for Kheer, we deliver Kheer).
Zomato-Blinkit Billboard Wordplay – Social Media Campaign
India is not for beginners: This Instagram post highlighted the ‘jugaad’ ability of Indians, especially mothers. The campaign garnered over 3600 likes and highlights how nothing is really finished until Ma says so.
Others on Propose Day: This campaign was a funny one based on ‘Valentines Week’. The reel opens with a couple on Propose Day, with a boy giving his girlfriend or wife a ring on Propose Day. But it ends with what singles will be doing on Propose Day. This reel has over 5600 likes.
Vegetables be like: This YouTube video was based on the Pedro Pascal and Nicolas Cage meme. This was created to reach and connect with the young target audience.
Vegetables be like – Social Media Campaign
Conclusion
The eGrocery industry is still in its growing stage, and Blinkit is a reminder of how to track marketing trends, and stay relevant by changing strategies when required. The brand focused on customer experience and speed to meet customer demands and set it apart from the market.
So, the next time you need a snack or find yourself missing Atta, just remember that Blinkit is a click away. With Blinkit’s innovative ability to shift its marketing conditions, the possibilities are limitless.
Rishabh Rathi
