Blinkit, a prominent player in the quick commerce sector, has posted remarkable financial growth in the fiscal year 2023 (FY23). This year was particularly significant for Blinkit, characterized by its merger with Zomato Ltd, one of India’s leading food delivery and tech platform giants. The strategic integration has not only bolstered Blinkit’s market presence but also redefined its growth trajectory.

Blinkit, officially registered as Blink Commerce Pvt., reported a substantial surge in revenue from operations in FY23. The figures soared to an impressive Rs 724.2 crore, marking a remarkable threefold increase from Rs 236.1 crore in the previous fiscal year, FY22. This extraordinary growth underscores the company’s ability to capitalize on the evolving quick commerce landscape and leverage its collaboration with Zomato to drive success.

However, Blinkit’s financial journey in FY23 was not without its challenges. While revenue witnessed phenomenal growth, the company also experienced an expansion in its losses. The losses widened from Rs 1,020.1 crore in FY22 to Rs 1,191.5 crore in FY23, as per insights derived from filings sourced from PrivateCircle Research, a renowned private market intelligence platform.

Furthermore, Blinkit’s expenditure surged to Rs 1,939.2 crore in FY23, signifying a significant increase from Rs 1,262 crore in the previous fiscal year. This growth in expenses was notably driven by heightened delivery and other related costs, which rose to Rs 565.8 crore from Rs 235.9 crore.

In light of the FY23 losses, Blinkit’s cumulative losses have now reached Rs 4,498.2 crore, an important aspect that the company is actively addressing.

Zomato, in a strategic move, had announced its acquisition of Blinkit in June 2022, a transaction valued at Rs 4,447 crore. This acquisition was in line with Zomato’s overarching strategy to diversify and expand its business segments, offering a holistic and comprehensive customer experience.

Subsequently, as Zomato’s core food delivery business transitioned into profitability during Q1 FY24, the focus has been on optimizing Blinkit’s financial performance. Albinder Dhindsa, the leader of Blinkit, shared insights during Q1’s earnings call, indicating the company’s commitment to achieving adjusted Ebitda positivity over the next four quarters.

Dhindsa explained that Blinkit has witnessed a notable expansion in its customer base, driven by consumers’ inclination to purchase a wide range of products beyond core grocery categories. This shift in consumer behavior has contributed to order growth, revenue expansion, and enabled the harnessing of operating leverage in a high fixed-cost model.

The integration of Blinkit and Zomato marks a significant milestone in the quick commerce sector, and the financial performance in FY23 exemplifies the opportunities and challenges associated with this dynamic and rapidly evolving market.