India’s fast-growing quick-commerce sector is moving toward a period of correction as access to capital tightens and the limits of cash-burning driven expansion become clearer, according to Blinkit CEO Albinder Dhindsa, Bloomberg reported.
Dhindsa, as quoted in the Bloomberg report, said the industry’s growth model, powered largely by continuous fundraising, is becoming unsustainable. Companies, he added, will soon be forced to confront how long they can continue operating with steep losses. “When such an imbalance builds up, corrections tend to come quickly and unexpectedly,” he told Bloomberg.
Capital inflows slow as funding needs surge
Over the past few years, global investors such as SoftBank, Temasek and Middle Eastern sovereign funds have poured billions into India’s rapid-delivery market, turning it into the world’s most closely watched experiment in 10-minute commerce.
But even as demand rises, investor appetite has cooled. Swiggy is gearing up for a $1.1 billion share sale, barely a year after its $1.3 billion market listing, at roughly the same valuation as its IPO. Rival Zepto has raised $450 million while preparing for an IPO next year, the report added.
A shakeout could redraw the contours of India’s consumer-tech ecosystem. Companies will be tested on whether customer demand holds without discounts and whether they have built differentiated services that can command higher prices.
As per the Bloomberg report, analysts at Bernstein recently identified Blinkit, owned by Zomato’s parent Eternalas the strongest long-term contender, citing its execution, improving unit economics and more than $2 billion in cash reserves.
However, they also flagged that intensifying competition could force Blinkit to invest aggressively before it turns free cash flow positive. The company remains loss-making as it continues expanding into new geographies.
Global giants crowd into cities, raising the stakes
India remains the only major market where quick commerce is still scaling rapidly. That has drawn in Amazon, Walmart-owned Flipkart and Reliance Retail, deepening competition in top cities.
At the same time, India’s fragmented supply chains, limited cold-chain capacity and uneven procurement networks make the business far more complex than traditional e-commerce. Dhindsa expects quick commerce and conventional online retail to converge.
Blinkit already works with thousands of third-party sellers and offers products that range from home appliances like refrigerators to more than 6,000 book titles.
But the company, he said, will expand categories selectively. Fixing issues such as high return rates or sizing challenges, especially in fashion, will determine whether a category offers a true “right to win”.
Smaller towns hold promise—but supply chains lag
Demand is growing beyond metros, and Blinkit plans to invest ahead of that shift. But Dhindsa noted that non-urban markets face infrastructure bottlenecks, not demand constraints. Efficient clusters of dark stores, better procurement systems and stronger cold-chain networks will be essential before these markets become profitable.
A key part of Blinkit’s push is sourcing more fruits and vegetables from local entrepreneurs who run aggregation businesses. Dhindsa told Bloomberg that this supports semi-skilled jobs in warehouses and encourages more workers to move back to their hometowns.
After years marked by aggressive discounting and market-share battles, Dhindsa told Bloomberg that Blinkit is focused on building a more sustainable model. He acknowledged that earlier phases of the sector inflated demand but eroded economics.
“We will not pursue growth for its own sake,” he said in the interview. “We will only do what serves the long-term health of the business.”
With rising capital costs and heightened competitive pressure, Dhindsa expects the next phase of quick commerce to be defined by consolidation, sharper category choices and more rational discounting.
“The pendulum has already swung once—from scepticism to exuberance,” he said in the interview with Bloomberg. “The correction will come. Whether it is in weeks or months, I cannot say.”