ET reported on July 13 that Blinkit has informed sellers it will transition to this new model starting September.
What is the inventory-led model?
In an inventory-led setup, Blinkit will directly purchase products from brands or sellers, store them in its own warehouses (dark stores), and handle the entire supply chain, from procurement to delivery.
This means Blinkit fully owns the inventory and is responsible for managing stock, logistics, and order fulfillment.
What does Blinkit use now?
Currently, Blinkit runs a hybrid model:
- Sellers list products and manage their own inventory on the platform (marketplace model).
- For popular, fast-moving items, Blinkit already purchases stock in bulk and sells directly.
With the new move, Blinkit plans to take complete control of all inventory on its platform.
“Last date to opt into the new system (is July 30). No new listings or inventory will be allowed after this date for non-accepted sellers,” Blinkit said in an email to sellers seen by ET. “(From August 31) Your inventory moves from your books to BCPL (Blinkit),” it added.
Why make this shift?
Greater control: Owning inventory allows Blinkit to control warehousing, logistics, product curation, and customer experience more closely.
Faster deliveries: By stocking high-demand items in advance, Blinkit can ensure quicker deliveries and better quality control.
Better margins: Direct sales can offer higher profit margins since there are no intermediaries or commission structures.
What are the trade-offs?
- Higher capital requirement: Blinkit must invest upfront to buy and manage inventory, increasing fixed costs.
- Inventory risks: Overestimating demand can lead to overstocking and cash flow issues.
- Reduced flexibility: The model limits the ability to quickly add new products compared to a marketplace.
The domestic ownership angle
Under India’s foreign direct investment (FDI) rules, foreign-funded marketplaces cannot own inventory or control sellers. By becoming an IOCC (with 55% domestic ownership as of March 31), Eternal enables Blinkit to shift to this model legally.
Rival Zepto has also increased Indian ownership ahead of its IPO, raising $350 million from domestic investors in November 2024.
ET had reported in April this year that the Aadit Palicha-led platform was in talks to with Edelweiss Alternative Asset, domestic family offices and smaller credit funds for around Rs 1,500 crore (more than $175 million) structured debt, also to bulk up domestic shareholding.
The promoter-level acquisition financing will help the Zepto founders increase their stake in the company to around 20%, from the current 18%, sources told ET.
