CosmicTaco

Blinkit Transitions to Inventory Model Boosting Margins

CosmicTaco · 2025-07-22T20:31:12.316818+05:30

- Blinkit, the quick-commerce arm of Eternal (Zomato), is pivoting from a marketplace to an inventory-led model to enhance margins over the next few quarters. - This strategic change aims to bolster margins and reduce losses, with adjusted EBITDA margins already over 2.5% in some cities. - Transitioning to direct seller status enables Blinkit to control procurement and pricing, key to improving supply chain efficiency and margin growth. - The shift is set to reduce regulatory challenges under India's foreign direct investment rules, giving Blinkit a structural advantage over international competitors. - Despite increased working capital needs, controlling inventory is expected to improve procurement from brands and streamline operations. Source: [The Arc](https://www.thearcweb.com/article/blinkit-says-margins-have-bottomed-out-will-start-owning-inventory-bPUUeW5spQ4eHgjH)

Blinkit, the quick-commerce arm of Eternal (Zomato), is pivoting from a marketplace to an inventory-led model to enhance margins over the next few quarters.
This strategic change aims to bolster margins and reduce losses, with adjusted EBITDA margins already over 2.5% in some cities.
Transitioning to direct seller status enables Blinkit to control procurement and pricing, key to improving supply chain efficiency and margin growth.
The shift is set to reduce regulatory challenges under India's foreign direct investment rules, giving Blinkit a structural advantage over international competitors.
Despite increased working capital needs, controlling inventory is expected to improve procurement from brands and streamline operations.

Source: The Arc