1 month ago

Blinkit raises capital expenditure for long-term growth

Blinkit raises capital expenditure for long-term growth
Eternal raises Blinkit’s long-term q-commerce bet · financialexpress.com

Blinkit, a company that delivers groceries quickly, is spending more money to build bigger stores and better technology.

This is because they believe that investing in their infrastructure will help them grow in the long term.

They used to focus on giving discounts to attract customers, but they found that this leads to higher losses and customers leaving when the discounts stop.

Now, they are focusing on making their stores more efficient and adding more products.

This has helped them make a profit and improve their financial performance.

However, this strategy requires more capital expenditure, and the company is counting on higher volumes to achieve their financial goals.

Competitors are still using discounts, but Blinkit believes their approach will lead to sustainable growth.

Key facts

Capital Expenditure per Store
Rs 2.5 crore
Adjusted Ebitda Margin Guidance
6% of net order value (NOV)
Adjusted Ebitda Margin (Q1FY27)
0.6% of NOV
Net Order Value (NOV) Growth
86.2% to Rs 17,132 crore
Number of Stores
2,443
Contribution Margin
5.3%
Net Average Order Value
Rs 518
Orders per Store per Day
1,600

Quotes

Albinder Singh Dhindsa

Blinkit group chief executive

“"Pricing‑led growth requires sustained cash burn, and leads quick commerce companies into a systemic trap they can’t easily walk out of."”
financialexpress.com
“"If a customer is looking for a discount, he or she has so many options. So they will switch. That cost is your sunk cost, it’s gone."”
financialexpress.com

Sources

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