Gurugram: Zomato’s hyperlocal vertical Blinkit is expected to add “significant value” over the long term if executed well. The quick commerce division is expected to achieve a gross order value (GOV) run rate of $2 billion by FY25, according to HSBC, from its current GOV run rate of $1 billion.
With increasing volume, Blinkit also holds the potential for an improvement in profitability as well, keeping up an anticipated strong growth in quick commerce for a few years due to low penetration and stabilising competition.
“Blinkit and Swiggy Instamart were almost neck-and-neck in hyperlocal gross order value for H1 22. We are positive on Blinkit’s growth as opportunity is large and the company is adding new SKUs,” the report noted. Efficient integration of logistics with food delivery will also help leverage cost centres. Blinkit registered a 21% year-on-year growth in order volume in Q3. Average order value, however, fell marginally to Rs 553 from Rs 568.
“The slight downward pressure on AOVs might be a result of the slowdown where customers are preferring to buy smaller packs instead of larger ones,” Albinder Dhindsa, founder and CEO of Blinkit, said in the earnings statement.
Dhindsa, however, said the third quarter was the highest ever in terms of new and returning customers, without divulging numbers. Blinkit registered monthly active transacting customers in the third quarter at 3.1 million, up from 2.6 million a year earlier.
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