'This kind of imbalance...': Blinkit CEO warns quick commerce bubble may burst soon

Blinkit CEO Albinder Dhindsa has warned that the bubble in the quick commerce sector may burst soon, as some players are running on losses for long. He, however, said that his company will thrive - and continue its expansion.

In an interview with Bloomberg, the Dhindsa said that a model that has so far relied on relentless fundraising is nearing its limits and companies will soon have to decide how long they can keep absorbing steep losses.

Bloomberg reported that global investors, including SoftBank Group Corp, Temasek Holdings Pte. and Middle Eastern sovereign funds have invested billions into this sector, which is experimenting with rapid delivery. However, similar ventures across the US, Europe and other parts of Asia have failed. 

Blinkit's rival Swiggy reported a consolidated net loss of Rs 1,092 crore in the second quarter of the financial year 2025–26, compared with a loss of Rs 626 crore a year earlier. Its revenue from operations, however, was up 54.42 per cent year-on-year to Rs 5,561 crore during the quarter.

The Eternal-owned quick commerce firm is preparing a $1.1 billion share sale barely a year after its $1.3 billion market debut - at roughly the same as its IPO price. Zepto, another competitor, has raised $450 million ahead of its initial public offering next year.  

"Usually when this kind of imbalance exists, the correction is very swift," Dhindsa told Bloomberg News. "It often catches people by surprise."

According to the report, analysts at Bernstein Societe Generale Group last month said that Blinkit has emerged as the long-term frontrunner due to its execution, strong unit economics and more than $2 billion in cash. However, they warned that rising competition could force heavier investment before the company turns free cash flow positive. Blinkit, too, remains unprofitable, despite its cash pile, as it keeps investing to enter new markets. 

Besides Zepto and Swiggy, Amazon, Flipkart and Mukesh Ambani's Reliance Retail have intensified competition in major cities. Fragmented supply chains, limited cold chain capacity and uneven procurement networks still make Indian quick commerce structurally distinct and more challenging than legacy e-commerce, the report said. 

The Blinkit CEO expects the line between traditional online retail and quick commerce to blur with time. He also said that his company will only expand into categories where it can fix issues such as returns or sizing in fashion and earn a real "right to win."

Blinkit, according to the report, plans to keep investing as demand spreads to smaller towns, which are home to a significant portion of India's population. But in more rural areas, it said, more robust supply chains and clusters of small warehouses strategically placed to fulfill orders are needed before markets become efficient. Infrastructure, not demand, is the real constraint, the CEO said.