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Business Model of Blinkit

by Nisha Garg
Business Model of Blinkit

Blinkit is an Indian online grocery delivery service. The company was founded in 2013 and is headquartered in Gurugram, India. It operates in various cities across India, providing customers with a wide range of products, including groceries, fresh fruits and vegetables, household essentials, and personal care items. 

Customers can place orders through the Blinkit website or mobile app, and the company delivers the products to their doorsteps. Blinkit operates through a network of local shops and merchants and uses its delivery fleet to ensure the timely delivery of products to customers. The company aims to provide its customers with a convenient, hassle-free grocery shopping experience.

When Blinkit was started, it was named Grofers. Grofers was just an online grocery app. The company took a pivot in the business strategy for the new-age consumers, shifted its focus on quick commerce, and became a 10-minute grocery delivery space.

About the founders

Blinked (formerly known as Grofers) was founded by Albinder Dhindsa and Saurabh Kumar in 2013. They became acquainted while working at Cambridge Systematics in the late 2000s and collaborated to join the grocery delivery sector. Their purpose was to overcome the challenges connected with the sector’s disorganised structure (both on the client and merchant end). The startup began in Delhi NCR before expanding to other locations in India.

Acquisition of Blinkit by Zomato

Zomato announced its all-stock acquisition of Blinkit on June 24, 2022, for $568 million. The acquisition was consummated on August 10, 2022. The main reason behind this acquisition is the strategic objective of Zomato, which always has been quick commerce. Quick commerce is expanding fast both in India and abroad, as customers have discovered great value in the speedy delivery of groceries and other necessities. So, the parent organisation of Blinkit is not Zomato.

Business Model of Blinkit

Blinkit was once known as Grofers, an on-demand delivery service of everyday items. It began as a hyperlocal delivery service for convenience and to bridge the gap between local retailers and the residents. Three pillars of Blinkit’s business model are as follows:


The origin of the company concept is mainly based on people who find it challenging to go to the market for daily shopping physically. Working individuals, older persons, students, and the sick are all included.

Local Vendors

Blinkit has partnerships with local vendors. Especially those with a little marketing budgets to expand their business reach and insufficient labour for doorstep delivery.

Delivery team

Blinkit has a staff of delivery agents assigned to each neighbourhood. They work with stores to guarantee that everyday necessities are delivered to clients’ doors on time.

Inventory Based Model of Blinkit

The inventory-based business strategy has greatly aided Blinkit’s reputation in the Indian grocery delivery market. The initial model of Grofers (now Blinkit) was based on the local shops and gained less popularity than it was supposed to. Meanwhile, competitors were also entering the online grocery delivery sector. In need of the hour, Blinkit had to pivot from its initial model to an inventory-based one.

In the initial model, customers’ grocery items were delivered straight from the local store. But in the inventory-based model, the groceries are firstly transported to a local warehouse. Then the inventory team checks to see if the food products are of standard quality. It is packed and sent to a buyer only once they are satisfied with the food quality.

How Does it Work?

Blinkit is an online grocery delivery app. It promises to deliver products from a wide range of almost 7000 products in just 10 minutes. It is currently operating in more than 30 cities all over India. To make delivery possible in just 10 minutes, BlinkIt has store partners almost in a range of 2 km.

For example, in delhi itself, they have over 60 partner stores. They have also worked hard on their in-store planning and tech. They have increased their efficiency and claim to pack the order in just 2.5 minutes of the order being placed.

How Blinkit Makes Money?

In the middle of the delivery procedure from a warehouse, there are numerous stages. The list is extensive from logistics, delivery partners, suppliers, vendors, and technology and merchant partners. However, this is where the money is coming from.

Blinkit keeps track of the quality of all groceries purchased in a warehouse. This allows them to handle the whole procedure more efficiently. When a customer places an order on the Blinkit mobile app, it links numerous brands and local stores. Blinkit takes an 8% – 15% fee in the process. Furthermore, Blinkit is investing in private brands, already generating significant income streams.


Blinkit, formerly known as Grofers, is an instant online grocery delivery service. It is currently operating in more than 30 cities all over India. In every city, they have partners almost in the range of 2 km. In delhi itself, they have over 60 partner stores. It promises to deliver a wide range of products in just 10 minutes. However, it was not always like this. Initially, it targeted to bridge the gap between the customer and the local customer. But it had many drawbacks back then. So, it shifted to an inventory-based model, which was a big hit. Through this model, they can now ensure the quality of the goods delivered to the customer.

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