Eternal's Blinkit Prioritizes Infrastructure Over Price Wars

Indian technology firm Eternal announced during its Q1 FY27 earnings call that its quick commerce service, Blinkit, will prioritize infrastructure investments and broadening its assortment over engaging in price wars.

CEO Albinder Dhindsa stated that the quick commerce sector has reached its peak competitive intensity, and continued discounting without a differentiated value proposition is unsustainable. Dhindsa believes the key to long-term success lies in investments in supply chains, warehousing, and expanding store footprints, which enable better customer service and lower marginal costs.

Blinkit has invested approximately INR 3,000 crore over the past four years to build its network. The company plans to continue investing in larger stores and warehousing infrastructure, positioning this as a sustainable competitive advantage over pricing strategies. Blinkit added 60 new stores in the first quarter, bringing its total to 2,443.

The company reported an inventory loss of around INR 308 crore for the quarter, primarily due to perishable goods. The average order value saw a slight decrease to INR 518. CEO Dhindsa also indicated that competitors' aggressive discounting is unsustainable and is expected to recede in the near future.

Eternal CEO also highlighted that their new 'Bistrot' concept offers an innovative solution for efficient food delivery by combining technology with automated food production systems, aiming for competitive pricing and speed.