Blinkit Marketing Case Study
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This case study has been prepared by thorough research about the Blinkit history, marketing strategies, revenue and business model It will provide the reader a comprehensive way to learn more about how Blinkit has covered a very vast segment of people in India.
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Blinkit Marketing Case Study
- 1. 2 Contents Acknowledgement ......................................................................................................................3 Executive Summary: Blinkit - Revolutionizing Indian Grocery Delivery.....................................4 Introduction ................................................................................................................................5 Company Highlights ..................................................................................................................6 Blinkit: How it Started?...............................................................................................................6 Blinkit: Name, Tagline and Logo ................................................................................................7 Blinkit – Business Model ............................................................................................................8 Blinkit’s Revenue Model- How Does it Make Money?..............................................................10 Blinkit’s Inventory Model .......................................................................................................10 Blinkit’s Investment Rounds- Funding and Investors................................................................11 Blinkit’s Growth Stages ............................................................................................................13 Blinkit’s Competitiors ...............................................................................................................14 Blinkit’s Challenges and Controversies so far............................................................................15 Blinkit’s Future Prospects: ........................................................................................................17 Conclusion: Blinkit - Navigating the Future of Grocery Delivery ..............................................18 Bibliography and Webilography................................................................................................20
- 2. 4 Executive Summary: Blinkit - Revolutionizing Indian Grocery Delivery In an era marked by the proliferation of e-commerce platforms, Blinkit (formerly Grofers) has emerged as a prominent name in India's online grocery delivery landscape. Founded in 2013 and headquartered in Gurugram, this Indian on-demand e-commerce startup has redefined the way Indians shop for daily essentials. With a diverse product range encompassing groceries, bakery items, baby care essentials, and more Blinkit offers customers the convenience of ordering through its mobile application. Scheduled doorstep deliveries by dedicated employees further enhance the shopping experience. Currently, Blinkit operates across a staggering 28 cities in India and boasts an impressive valuation of $1.01 billion, with over 6.8 million visitors on its app. Through this marketing case study, we try to delve more into the background, marketing strategy,Business and revenue models, its customer segments and much more
- 3. 5 Introduction Blink it (formerly Grofers) is an on-demand grocery delivery service based in Gurugram, India. The company provides a wide range of everyday needs products to its customers, including groceries, bakery, baby care, and more. Through the Blink it mobile app, customers can purchase and order products at a specific time, and Blink it employees will deliver them to their location. Currently, Blink it is available in more than 28 cities across India. Blink it was founded in 2013 by two Indian Institute of Technology (IIT) graduates, Albin Dhindsa, and Suresh Kumar. At the time of the emergence of many startups, they both saw an opportunity to fill the void in the unstructured hyperlocal space of the merchant-consummate transaction. Their vision was to offer a single point of contact for the customers’ local delivery needs through on-demand pick-up and drop-off services. This would make it easier for the consumers to manage the logistics from their locality’s grocery, medical, and restaurant stores. About the founders: Albinder Dhindsa Albinder is the CEO and co-founder of the company. He had completed his B.Tech from IIT, Delhi and holds an MBA degree from the Columbia Business School. Saurabh Kumar Saurabh is the co-founder of Blinkit. He had completed his B.Tech degree in Civil Engineering from IIT Bombay and an MS in Transportation Engineering from The University of Texas, Austin.
- 4. 6 Company Highlights Startup Name Blinkit Headquarters Gurugram, India Sector Online Shopping/Ecommerce/Grocery Delivery Founders Saurabh Kumar, Albinder Dhindsa Founded December 2013 Valuation $1.01 billion (September 2021) Revenue/Turnover $319.62million Total Funding $1 billion Area Served India Parent Organization Zomato(June 2022) Website https://blinkit.com/ Blinkit: How it Started? Albinder started working as a transportation analyst for URS Company in USA after his graduation. He kept in touch with Saurabh Kumar without any intention of starting a business. Both of them realized that there was a big gap in the delivery sector. At that time, there were a lot of startups coming up. Both of them thought that there was a need to sort out the unstructured hyperlocal space of the transaction made between the merchants and the consumers. This is when they started building a foundation for their startup. The idea was to offer a single solution for the customers’ local delivery needs by providing on- demand pickup & drop services. The idea was to make it easier for the customers to get their groceries from the shops in their locality like grocery store, medical store, and restaurants. Initially, they also provided groceries delivery for customers from their neighbourhood stores and supermarkets.
- 5. 7 Blinkit: Name, Tagline and Logo On December 13, 2021, Grofers officially changed its name to “Blink it” after completing its rebranding campaign. The new name for Grofers aligns with the company’s vision of delivering groceries in an instant – literally, in the blink of your eye. The brand’s new tagline is “Lets Blink it” or “#letsblinkit.” Why did Grofers rebranded as Blinkit? The online grocery delivery company Grofers,, has changed its name to Blinkit to reflect its new emphasis on the "quick commerce" or "10- minute grocery delivery" space. The change comes a few months after Grofers announced its "10- Minute Delivery" initiative. “We were doing it [rebranding and focusing on faster delivery] out of the mind that we either out-innovate [sic] ourselves, or we will become redundant,” founder and chief executive-Albinder Dhindsa Logo – The company’s logo is very appealing . It is in orange colour which is a symbol of change, success, happiness, and balance . Tagline – The company’s tagline is – Let's Blink it.
- 6. 8 Blinkit – Business Model Blink it works on a market economy business model also called as hyper-local on demand logistics system. The goal of the hyper-local logistics system is to eliminate the need for consumers to travel to local shops to purchase consumer goods instead of ordering online. The startup does not have any grocery store or warehouse. Instead, it partners with local grocery stores in the city. The company sends its delivery boys to collect the products ordered by consumers from the local grocery stores. The company accepts orders from its mobile application or website. The tie-up arrangement helps local grocery store owners to get more orders. Also, the Grofers makes money from these orders because the company charges a commission. Main components of Blinkit's Business model Regional suppliers, regional clients, and delivery staff are the three main components of its business model. 1. Regional Suppliers: Partnering with local retailers is an integral part of Blinkit’s business model. This is especially true for mall businesses that don’t have the manpower
- 7. 9 to deliver door-to-door and have limited marketing budgets to reach a larger customer base. 2. Regional Clients: One of the driving forces behind the idea for Blinkit was the number of people who can’t find the time to go to the market on a daily basis. This includes working people, senior citizens, students and even patients. 3. Delivery Staff: . A Blinkit team consisting of delivery workers is assigned to a particular location. They work with retailers to deliver everyday essentials to customers’ doors as quickly as possible
- 8. 10 Blinkit’s Revenue Model- How Does it Make Money? Blink It's revenue model is analogous to that of commission-based retailers. The company has established partnerships with local store owners and merchants for the purchase of groceries and other essential items in the local vicinity. Blink It incurs a commission on these orders from these merchants. The commission rate is between 8% and 15% when the order is under 700 rupees, and between 12% and 15% if the order is under 1000 rupees. Additionally, Blink It charges a delivery fee for orders under INR 250. Furthermore, Blinkit also invests in private brands, which are already engaged in generating significant income streams Blinkit’s Revenue Record The company had earned a revenue of INR 1282.3 Cr. in the FY 2019 and total INR 2289.2 Cr. in the FY 2020. In the 2021 FY, Blinkit recorded a revenue of INR 2725 Cr. In 2022 FY Blinkit earned a revenue of INR 26596.06 Cr In 2023 after Zomato acquired its shares it has seen recorded revenue of 363 Cr (till March 2023) Blinkit’s Inventory Model Blinkit’s inventory-based business model has helped build its brand’s credibility in India’s grocery delivery market. Grofers’ original model was based on local shops and didn’t gain as much traction as it should have. As competitors entered the online grocery delivery space, Blinkit needed an hour to pivot from its original model. With Grofers, customers’ groceries were delivered directly from the local store, whereas with Blinkit, their groceries are first transported to the local warehouse. From there, the inventory team checks if the food products meet standard quality standards. After that, the groceries are packed and sent to the buyer once they are happy with the quality of the food.
- 9. 11 Blinkit’s Investment Rounds- Funding and Investors Blink It has achieved considerable success in terms of investor and funding, funding Till now Blinkit has raised approximately $927 M in its total 19 rounds. The latest round of funding was led by the Food Tech major Zomato which infused $100 million into Blinkit on 11 March 2022. The fast commerce unicorn also confirmed that this $100 million is the first installment of a $400 million funding round and that more funds will be made available next week. The online grocery delivery service was approved by the Indian food delivery giant Zomato on 16 August 2021. The online grocery delivery major has achieved a valuation of over $1 billion and joined A brief record of Blinkit’s Investment has been given below: Date Amount Round Lead Investors March 16, 2022 $150 Million Debt Financing Zomato March 11, 2022 $100 Million - Zomato September 29, 2021 $16.7 Million - KTB Ventures August 17, 2021 $100 Million - Zomato November 13, 2020 $55 Million Venture Round SoftBank Vision Fund (SVF) and other existing investors
- 10. 12 December 31, 2019 - - - November 18, 2019 $43.04 Million Corporate Round Grofers International Pte Ltd October 29, 2019 $18.83 Million Series F Bennett Coleman and Co Ltd August 19, 2019 $70 Million Series F Softbank Vision Fund July 15, 2019 $10 Million Series F Abu Dhabi Capital Group May 15, 2019 $220 Million Series F Softbank Vision Fund May 16, 2018 $53.81 Million Series E Softbank Vision Fund October 25, 2017 $12.91 Million Series D Grofers International September 1, 2017 $839K Debt Financing Trifecta Capital Advisors November 2015 $120 Million Series D Cyriac Roeding – Roeding Ventures, Softbank, Sequoia Capital and Tiger Global April 2015 $35 Million Series C Sequoia Capital February 2015 $10 Million Series B Sequoia Capital and Tiger Global December 2014 $500k Seed Round/Series A Sequoia Capital, Deepinder Goya
- 11. 13 Blinkit’s Growth Stages In India, The number of orders on Blinkit increased 21 per cent to 3.16 crore till now across 12 to 13 cities. Its platform contains more than 5k+ different products prepared for delivery in 10 minutes. Till March 2023 Company’s revenue is recorded .up to 363 Cr. It is India's third-largest platform for grocery delivery Every year, Blinkit is seeing a enormous increase in its customers "Blinkit's Share-Swap Merger with Zomato" On 24 June 2022, Zomato announced that it had acquired Blinkit for a total consideration of Rs 4.447 crores. According to a letter to BSE from Zomato, the board of directors of the company has approved the purchase by Zomato for a total of Rs 4.485 crores from its shareholders up to Rs 33,018. The letter also stated that Zomato's Hyperpure, a subsidiary of B2B company Zomato, had purchased HOTPL, a company that supplies warehousing and related services, for Rs 60,7 crores from Blinkit. In the Blinkit deal, Zomato's shareholders will get one share for every 10 shares of Blinkit held by Zomato. Zomato had invested $100 million in Blinkit in March 2022 for a shareholding of more than 10%. This acquisition will give Zomato access to Blinkit’s 400+ dark stores. It’s worth noting that Blinkit had previously reduced its dark store count from 450 to 400 as a cost-saving measure. Dark stores are a key component of the fast commerce space.
- 12. 14 Blinkit’s Competitiors Even though Blinkit has been the go-to for investors, there's still a lot of competition out there. Big companies and supermarkets are starting to focus more on online sales, which makes it easier for e-commerce platforms to compete with each other. Blinkit's main competitors include Amazon, BigBasket Swiggy Zopnow JioMart Dunzo Nature's Basket Amazon BigBasket Zepto Pepper Tap Swiggy Instamart
- 13. 15 Blinkit’s Challenges and Controversies so far Blinkit has faced a series of setbacks in recent months, including the closure of its operations in several major cities. The company's strategy of offering large discounts to its customers has backfired, as it has already invested over INR 600 Cr in the past 3-4 months to grow its business. 1. Quality and Freshness Concerns: There have been occasional customer complaints about the quality and freshness of products delivered by Blinkit. This is a common issue in the online grocery delivery industry, and Blinkit has been working to address it through improved quality control measures. 2. Delivery Delays: Like many online delivery services, Blinkit has faced criticism for delivery delays, especially during peak demand times or due to logistical challenges. These delays have sometimes resulted in customer dissatisfaction. 3. Price Discrepancies: Some customers have reported discrepancies between the prices listed on the Blinkit app or website and the prices charged during checkout. Such pricing issues can lead to disputes and dissatisfaction. 4. Worker and Delivery Partner Concerns: In the gig economy, issues related to worker
- 14. 16 wages, safety, and benefits have been widely discussed. Blinkit, like other delivery platforms, has faced questions about the treatment and compensation of its delivery partners. 5. Blinkhit Vs Blinkit: Blinkhit, a startup in Bengaluru, has filed a petition with the city civil court to stop Blinkit from using their trademark. The court has already ruled in favor of Blinkhit twice and issued injunctions against them. The Karnataka HC is currently staying the injunctions, but it's causing a lot of trouble for Blinkit and Zomato. On August 4, the Supreme Court said it won't interfere with a Karnataka HC order that removed a stay against Blinkit because it was similar to a trademark. The court said it's still in the trial of the trademark infringement suit, so the city civil court gave Blinkit a temporary order to not use the trademark until the trial was finished.
- 15. 17 Blinkit’s Future Prospects: It's evident that Blinkit has ambitious plans for the future, aiming to solidify its position in the Indian market for grocery delivery services. Here's a summary of their exciting plans: 1. Market Share Growth: Blinkit has set its sights on becoming a major player in the online grocery delivery space. With the claim of having captured 13% of the market, it aspires to position itself as the third-largest platform for grocery delivery in India, following in the footsteps of Amazon and Bigbasket. 2. Expansion: Blinkit is planning to expand its operations into new locations. This expansion strategy suggests a commitment to reaching a broader customer base and serving consumers in more regions across India. 3. Market Domination: The primary objective of Blinkit is clear: to dominate the Indian market for grocery delivery services. This ambition reflects the company's determination to lead the industry and become a household name for online grocery shopping. 4. Diverse Product Range: Blinkit intends to diversify its product offerings. In addition to groceries, they plan to offer a broader variety of items, including products for babies, fresh fruits, baked goods, pet supplies, flowers, and more. This expansion aims to cater to a wider range of customer needs.
- 16. 18 Conclusion: Blinkit - Navigating the Future of Grocery Delivery The marketing case study of Blinkit, formerly known as Grofers, provides a fascinating glimpse into the evolution and aspirations of this Indian e-commerce powerhouse. From its humble beginnings in 2013 as a localized grocery delivery service, Blinkit has transformed into a dynamic force in the online grocery delivery sector. Key takeaways from this case study are as follows: 1. Evolution and Adaptation: Blinkit's journey showcases its adaptability and evolution in response to market dynamics. The company's transformation from Grofers to Blinkit reflects a commitment to diversification and expanding its product offerings to cater to a wider customer base. 2. Competing with Giants: Blinkit's ability to challenge industry giants like Amazon and Big Basket underscores its determination to be a significant player in the Indian e- commerce landscape. With a market share claim of 13%, it's positioning itself as a formidable third contender in online grocery delivery. 3. Customer-Centric Approach: Throughout its growth, Blinkit has maintained a strong focus on customer satisfaction, emphasizing convenience, quality, and affordability. This customer-centric approach has been instrumental in building a loyal user base. 4. . Expansion and Ambition: Blinkit's expansion plans, both in terms of locations served
- 17. 19 and the diversity of products offered, reflect its ambition to dominate the Indian grocery delivery market. The goal of multiplying its size by 100 over the next five years is an audacious but indicative of the company's long-term vision. 5. Challenges and Controversies: Like any rapidly growing enterprise, Blinkit has faced its share of challenges and controversies, including issues related to product quality, delivery delays, and pricing discrepancies. Addressing these concerns will be crucial in maintaining and growing its customer base.
- 18. 20 Bibliography and Webilography 1. https://www.finowings.com/Case-Study/blinkit-case- studyhttps://www.studocu.com/in/document/svkms-nmims/operations-management/case- study-on-blink-it/55863248https://wafflebytes.com/blog/business-model-of- blinkit/https://thedigitalyug.com/startup/blinkit-success-story-india-s-fastest-growing-e- commerce-platform 2. https://www.similarweb.com/website/blinkit.com/#ranking 3. https://www.bqprime.com/markets/how-zomatos-quick-commerce-unit-blinkit-has-fared- since-buyout 4. https://www.moneycontrol.com/news/business/sc-rules-in-favour-of-zomatos-blinkit-in- trademark-dispute-with-blinkhit-11098051.html 5. https://www.businessworld.in/article/BW-Explains-What-Is-The-Reason-Behind-Blinkit- Workers-Strike-/17-04-2023-473181/