Profitability gap widens between Blinkit and Instamart
Medianama reports that Blinkit reached profitability in the second quarter while Swiggy's Instamart posted significant operating losses, highlighting divergent growth strategies.
The Indian quick-commerce sector shows a growing financial divide between Blinkit and Swiggy’s Instamart. In the September quarter, Blinkit reported an adjusted EBITDA profit of Rs 184 crore, contrasting sharply with Instamart’s adjusted operating loss of Rs 895 crore.
Operational data indicates that Blinkit holds a significant lead in volume and customer retention. Blinkit processed 398.9 million orders during the quarter—three times the volume of Instamart’s 130.3 million. Furthermore, Blinkit’s customers averaged 3.6 orders per month, compared to 2.9 for Instamart. Each Blinkit store handled approximately 1,700 daily orders, outperforming Instamart’s 1,192.
Swiggy has outlined a recovery plan for Instamart, intending to reach break-even through higher revenue per order via private labels and advertising, alongside operational densification. Swiggy’s management noted that pricing investments made to retain users during this quarter are expected to taper off in the coming months.
Blinkit is leveraging its lead by focusing on recurring customers and aggressive store expansion. Eternal Group, Blinkit’s parent company, intends to scale its network to 5,000 stores by March 2028, specifically targeting smaller cities where it reports rapid order adoption rates.