Blinkit CEO warns of qcom shakeout amid capital crunch

The quick-commerce (qcom) sector in India is heading towards a sharp correction as companies run low on cash, and aggressive fundraising becomes apparent, said Albinder Dhindsa, the chief executive officer (CEO) of the country's largest qcom platform, Blinkit.

- UDISHA SRIVASTAV

Signalling a shakeout in the sector, he said companies would soon be forced to confront how long they can continue absorbing steep losses. "Usually when this kind of imbalance exists, the correction is very swift. It often catches people by surprise," Dhindsa said while speaking to Bloomberg. "The pendulum has already swung once from skepticism to exuberance. Whether the correction comes in three months or six months or next week, I do not know, but it will come," he added.

The comments come on the same day as competitor Swiggy launches its qualified institutional placement (QIP), through which it plans to raise 10,000 crore. It's also a period when another rival, Zepto, has converted to a public company and plans to raise funds via an initial public offering (IPO) next year.