Blinkit in Trouble: Zomato now rebranded as Eternal, reported a major drop in profits for the fourth quarter of the financial year 2024-25. The company’s net profit fell by 78% year-on-year, down to ₹39 crore.

The main reason behind this drop is the heavy investment in Blinkit, its quick-commerce platform.

Blinkit in Trouble:

Blinkit’s losses widened. Its adjusted EBITDA loss rose from ₹103 crore to ₹178 crore this quarter. Eternal expected this as they planned to expand Blinkit’s store network faster. In Q4, the company added 294 new stores—the highest ever in a single quarter. As a result, monthly active customers increased from 10.6 million to 13.7 million.

Despite this growth, competition in the quick-commerce space is increasing rapidly. Zomato’s CEO, Deepinder Goyal, mentioned that the rise of quick delivery for packaged food is hurting traditional restaurant food delivery. Akshant Goyal, CEO of Eternal, also noted that more companies are entering the space, especially in non-grocery items, and next-day delivery services are speeding up.

To stay ahead, Blinkit plans to focus on three key areas: improving customer experience, offering a wider range of products, and expanding its store network and supply chain. However, these efforts may lead to more spending and delay profits in the short term.

Albinder Dhindsa, CEO of Blinkit, explained that profit will depend on how fast they expand and how intense the competition becomes. He said the company remains focused on long-term goals and expects profits in the future, targeting a stable profit margin of around 5–6%.

According to a Citi report, Blinkit leads the quick-commerce market with a 41% share, followed by Zepto and Swiggy. Despite short-term losses, Blinkit is determined to grow and maintain its lead in this competitive space.

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