The blistering pace at Blinkit

AD REVENUES WILL BE THE CORNERSTONE OF LONG-TERM PROFITABILITY FOR QC PLAYERS SINCE DIGITAL ADS ON E-COMM OR QC PLATFORMS ARE MORE EASILY TRACKED

- AYANTI BERA

LAST MONTH, ALBINDER Dhindsa rolled out Blinkit's services in his home town of Patiala. It was a particularly special moment for the entrepreneur who had started out ten years back to build a business. Indeed, Dhindsa has much to feel good about because, over the past year, it has become abundantly clear that his bet on quick commerce has paid off.

And he must feel even more satisfied that, with a market share that is nudging 40%, Blinkit now has a big headstart.

The doubts surrounding q-commerce, that had surfaced when Zomato bought Blinkit in June 2022 for 4,447 crore, have dissipated. Experts now believe q-commerce will outpace eretailing; they expect this space to grow at a compounded 35% plus in the next few years on the current base of just under $4 billion. On the other hand, the e-retailing market is tipped to grow at a compounded 25% in the next five years.

Not surprisingly, q-commerce services have also moved to smaller towns like Pune and Rajkot. As Sachin Salgaonkar of BofA Securities observes,companies have struggled to understand granular consumption patterns in the kirana market after the products left their distributor network. "Q-commerce offers hyperlocal insights and allows brands to specifically target high-end users," Salgaonkar points out.

The inherent strength of the q-commerce proposition puts Blinkit in a position from where it can scale up fast.