The quick commerce company bounced back with a 29% quarter-on-quarter gross order value (GOV), growth following tepid growth in Q1FY24, due to temporary disruptions in the business.
On a year-on-year basis, the GOV growth was 86%.
The GOV growth was largely driven by same store sales growth as the company continues to focus on serving more customer needs and ensuring consistency of service levels.
Adjusted EBITDA loss for the quarter narrowed marginally to Rs 125 crore from Rs 133 crore in the preceding June quarter. Adjusted EBITDA margins improved to -4.5% from -6.2% in the previous quarter.
Blinkit also saw a net addition of 28 new stores during the quarter, taking the overall store count to 411 stores at the end of the quarter.
The company is aiming for at least 100 new stores within FY24, and is trying to exit March 2024 with somewhere around 480 stores in total.”We have also seen festivals driving much stronger growth for quick commerce as compared to food delivery,” Zomato said. With major festivals in the December quarter, the management expects another high-growth quarter from Blinkit.
Deepider Goyal is seeing tremendous potential in Blinkit, even greater than for Zomato in the future.
“With 60% of Blinkit’s stores contribution positive, and many of them already at 5%+ contribution margin. We are now seeing profitable economics not just at a store level but also at a city level — where some of our cities are now operating at similar contribution per order as the food delivery business in those cities,” Goyal said.
“Blinkit’s GOV is already more than Zomato’s GOV in some cities. At this pace, where Blinkit’s GOV is growing at 80%+ YoY, we wouldn’t be surprised if Blinkit’s GOV becomes multiple times larger than Zomato’s GOV in overlapping cities, which will more than compensate for the wider geographical footprint of Zomato,” he added.
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