Blinkit Business Model & Revenue Streams Explained: How Blinkit Earns Money
🔍Insights
Putting in an order for groceries was once considered the most difficult task. Shopping for groceries is becoming more pleasurable because of the development of "smart grocery stores" like Nature's Basket, Dmart, Reliance Mart, and others. But now that technology is driving more solutions, online grocery shopping is becoming increasingly popular. Blinkit is one of the players that has risen to the top in this field. An Indian grocery delivery business that operates on demand. Blinkit (formerly Grofers) has simplified people’s lives by bringing a vast array of products right to our front doors. Subsequently, the company changed its name to Blinkit and adopted the slogan "Let's Blink It." This includes food, baked goods, baby necessities, and more.
About Blinkit
Blinkit Business Model
How Blinkit Makes Money | Blinkit Revenue Model
USP of Blinkit
Analysing the Future
About Blinkit
Launched in December 2013, Blinkit is spearheading the use of innovative technologies to revolutionize India's massive unorganized grocery market. The Blinkit platform, which is based on a proprietary stack of technologies, brings together shoppers in need of common necessities, retailers who can meet those requirements, and manufacturers seeking a way to reach shoppers throughout the country. The technology developed by Blinkit, co-founded by Albinder Dhindsa and Saurabh Kumar, is well suited to meet the needs of India's rapidly expanding urban population and the additional 100 million or so people who have not yet shopped online.

Blinkit Business Model
The foundation of Blinkit is the marketplace model. It lacks any autonomous marketplaces or storage facilities. Instead, delivery people are sent by the corporation to collect the necessary supplies from several nearby shops and grocery stores. The customers' orders are subsequently fulfilled by the delivery boys.
Through its tie-up mechanism, Blinkit can swiftly transport consumers' orders submitted through its app or website to neighboring supermarkets. Blinkit makes money from these orders since the company charges a commission. The core elements of Blinkit's business model are regional suppliers, regional clients, and delivery personnel.
Blinkit Business Model Canvas
Blinkit operates on a marketplace-based business model that connects local stores with nearby customers through its app and website. It earns primarily through commissions on orders, delivery fees, and advertisements. Below is the Blinkit Business Model Canvas summarized:

1. Key Partners of Blinkit
- Local grocery stores and supermarkets
- Delivery personnel
- Advertising brands
2. Key Activities of Blinkit
- Managing the app/website platform
- Order processing and logistics coordination
- Partner onboarding and support
- Running targeted ad campaigns
3. Key Resources of Blinkit
- Blinkit mobile app and website
- Delivery workforce
- Partner network (local suppliers)
- Brand reputation for quick delivery
4. Value Propositions of Blinkit
- Ultra-fast delivery ("within the blink of an eye")
- No need to visit stores physically
- Easy-to-use ordering and tracking app
- Convenience for urgent grocery needs
5. Customer Relationships of Blinkit
- App-based customer support
- Real-time order tracking
- Personalized offers and ads
6. Channels of Blinkit
- Blinkit mobile app
- Blinkit website
7. Customer Segments of Blinkit
- Urban households
- Busy professionals
- Students and bachelors needing quick deliveries
8. Cost Structure of Blinkit
- Delivery partner payouts
- App and tech maintenance
- Advertising and marketing expenses
- Partner management and operations
9. Revenue Streams of Blinkit
- Marketplace commission (54.10% of revenue)
- Delivery charges (21.47% of revenue)
- Advertising fees from brands promoted on the platform
How Blinkit Makes Money | Blinkit Revenue Model
As stated earlier, the company earns heavily through its online orders, there are other earning sources as well from where now company has started minting money. Following are the revenue streams that encompass Blinkit's revenue model:
Marketplace Commission from Online Platforms: Online orders make up the bulk of Blinkit's sales, accounting for 54.10% of the company's total revenue.
Delivery Services: The company charges certain commissions or delivery charges on each customer's delivery. The delivery partner receives a portion of the commission while the company retains the remaining portion. The yearly income of the company is around 21.47 percent generated by this model.
Advertisement Services: Blinkit has quickly become one of the most popular online grocery shopping platforms, and it continues to rank among the industry's leaders. The company has also taken advantage of this potential by implementing a business strategy in which it promotes specific companies on its website in exchange for payment.

In Q2 FY25, Blinkit reported a revenue of INR 1,156 crore, more than doubling from INR 505 crore in the same period last year. However, its adjusted EBITDA loss increased to INR 8 crore, up from an INR 3 crore loss in the June quarter. Additionally, Blinkit's gross order value (GOV) surged by 122% year-on-year to INR 6,132 crore.
Blinkit's revenue grew significantly from INR 747 crore in FY23 to INR 1,934 crore in FY24, driven by strong growth in operations.
USP of Blinkit
Delivery Within the Blink of an Eye: With this incredibly quick service, customers won't even need to plan their grocery list. Did you forget to include a component in your dinner? Do you require a snack on the go? Blinkit responds lightning-fast to these urgent demands. This makes it a very handy option to go to.
Accessibility at Your Seated Pleasure: With the Blinkit app, customers can quickly browse inventory, place orders, and monitor their deliveries. The need to physically go to a store and wait in checkout lines has become irrelevant by this.
Analysing the Future
Blinkit may have been the investor favorite for a long time, but it is far from alone. Internet sales are becoming more important to many large enterprises and grocery stores. Because of this, competition among eCommerce platforms is increasing. Zopnow, Dunzo, Zepto, and many more delivery partners are preparing to dominate the industry. Therefore, for Blinkit to maintain its lead, it must perform exceptionally well.
FAQs
What is Blinkit?
Blinkit is an on-demand online grocery delivery service that was founded in the year 2013. This eCommerce startup platform provides a variety of daily needs products ranging from groceries, bakery items, baby care items, and many more to its customers. Blinkit is a Gurugram-based company that is currently present in 26 cities across the country.
How does Blinkit make money or what is revenue model of Blinkit?
The main revenue streams of Blinkit include Marketplace Commission from Online Platforms, Advertisement Services, and Delivery services.
Is Blinkit acquired by Zomato?
Yes, in 2022, Zomato acquired Blinkit for $569 million.
Who is the CEO of Blinkit?
Albinder Dhindsa is the co-founder and CEO of Blinkit.
What is the business model of Blinkit?
Blinkit follows a marketplace model, connecting local grocery stores with customers through its app. It earns mainly from commissions on orders, delivery charges, and brand advertisements.
How Blinkit works?
Blinkit works by receiving customer orders via its app or website, then assigns delivery partners to pick up items from nearby stores and deliver them quickly, often within minutes.
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