Blinkit losses have increased to Rs 103 crore due to intensifying competition Zomato Q3 report reveals. The company has stated that its margin expansion has been put on hold
Blinkit, the quick commerce division of Zomato, reported an adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss of Rs 103 crore in Q3FY25, marking a 16 percent increase year-on-year (YoY) from the Rs 89 crore loss incurred during the same period last year.
Compared to the Rs 8 crore loss recorded in Q2FY25, the adjusted EBITDA loss on a sequential basis is significantly higher.
On a YoY basis, the company’s revenue surged by 117 percent from Rs 644 crore in Q3FY24 to Rs 1,399 crore in Q3FY25. Additionally, the gross order value (GOV) increased by 120 percent YoY to Rs 7,798 crore in Q3FY25.
Despite the revenue growth, Blinkit has experienced widening losses as competitors like Flipkart Minutes have expanded operations, leading to a loss of market share. Major players such as Amazon have also announced their entry into the market, intensifying competition.
To stay ahead of rivals, Blinkit has accelerated its expansion plans. Deepinder Goyal, co-founder and group CEO of Zomato, mentioned in the company’s shareholder letter that they are on track to reach their goal of 2,000 stores by December 2025, a year earlier than previously anticipated. By Q3FY25, Blinkit had already surpassed the 1,000-store milestone, one quarter ahead of schedule.
Goyal attributed the increased losses in the quick commerce business to the decision to expedite growth investments that were originally planned to be spread out over the next few quarters.
In addition to competition from Flipkart Minutes and Amazon, other players like Zepto and Tata BigBasket are aggressively expanding in the market. This quarter also marks the first full quarter since Swiggy, an old rival, became a listed company.
Due to the heightened competitive landscape, Blinkit will see its margins flatline around the 18 to 20 percent range.
Heightened competition has resulted in a temporary pause in margin expansion within the business,” stated Albinder Dhindsa, CEO of Blinkit. “This is an expected occurrence and should be viewed as such.”
In response to the increased competition, Zomato CFO Akshant Goyal acknowledged that Blinkit will continue to experience losses. “As we push forward with store expansion, our networks may need to support a higher number of under-utilized stores, impacting profits in the short term over the next one or two quarters,” Goyal explained. “However, once we emerge from this expansion phase, we anticipate a significant shift from loss-making to profitable operations.”
To accelerate operations in the face of growing competition, Zomato recently injected Rs 500 crore into Blinkit earlier this month.
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