Q-comm bubble may be close to bursting: Blinkit CEO

Dhindsa expects the line between traditional online retail and quick commerce to blur with time

- SANKALP PHARTIYAL & ANTO ANTONY

THE HEAD OF Blinkit, India’s biggest quick commerce player says the sector is hurtling toward a shakeout as rivals’ cash dries up, but that his startup will thrive — and continue its expansion.

A model that has so far relied on relentless fundraising is nearing its limits and companies will soon have to decide how long they can keep absorbing steep losses, Blinkit Chief Executive Officer Albinder Dhindsa said in an interview.

Global investors including SoftBank Group, Temasek Holdings and West Asian sovereign funds have poured billions into the sector, making it the world’s most closely watched experiment in rapid deliveries. Similar ventures across the US, Europe and other parts of Asia have unraveled. India’s dense cities, lower cost of labour and ubiquitous digital payments offer an edge, but the economics depend on logistics efficiency and continued access to capital.

Investors have been cautious even as funding needs climb. Swiggy, Blinkit’s smaller rival, is preparing a $1.1-billion share sale barely a year after its $1.3-billion market debut — at roughly the same as its IPO price. Competitor Zepto has raised $450 million ahead of a planned initial public offering next year.