Blinkit and Swiggy Instamart diverge on private label strategy
Indian quick-commerce rivals Blinkit and Swiggy Instamart are taking opposing approaches to private labels to drive profitability.
Swiggy is increasingly relying on its own brands, such as No!ce and Nectr, to distinguish its Instamart service from competitors. By creating its own product lines, Swiggy aims to boost customer retention and capture higher margins, projecting that product mix improvements will be a primary driver in reaching break-even status.
In contrast, Blinkit has explicitly ruled out the development of private labels. Eternal Group CEO Albinder Dhindsa stated that the platform aims to remain a neutral marketplace, preferring to earn revenue through advertising from the brands it stocks rather than competing with them directly. Blinkit maintains that product development and manufacturing fall outside its core competency.
The strategic split underscores different paths to profitability in the highly competitive quick-commerce sector. While Blinkit has achieved an adjusted EBITDA profit, Swiggy Instamart continues to record losses, focusing on its product curation strategy to close the monetization gap with its rivals.