Albinder Dhindsa, Blinkit CEO warns India’s quick-commerce boom is nearing a shakeout

Blinkit Chief Executive Officer (CEO) Albinder Dhindsa has said India’s fast-growing quick-commerce industry may be approaching a reset as rising capital needs collide with shrinking investor appetite.

Dhindsa told Bloomberg News that the model, which is built on rapid expansion and a steady flow of venture money, is nearing its limits, and companies will soon be forced to confront how long they can sustain heavy losses, however, his startup will continue to expand and thrive.

Global investors such as SoftBank, Temasek and major Middle Eastern funds have channelled billions into India’s 10–20-minute delivery experiment, even as similar businesses in the US, Europe and parts of Asia have failed.

While India’s densely populated cities, lower labour costs and widespread digital payments make the country more favourable for the model, long-term viability still hinges on logistics efficiency and access to capital.

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Funding, however, is tightening just as burn rates remain high.  According to Bloomberg, Swiggy, Blinkit’s closest rival, and operator of quick-commerce service Instamart, is preparing a $1.1 billion share sale (QIP) roughly a year after its $1.3 billion listing at nearly the same price as its IPO. Another competitor, Zepto, recently raised $450 million ahead of a planned listing next year. Both cases highlight the enormous capital required to keep the model afloat.

“Usually when this kind of imbalance exists, the correction is very swift,” Dhindsa said. “It often catches people by surprise.”

Analysts at Bernstein Société Générale Group, cited by Bloomberg, said the Eternal Ltd

. owned Blinkit has emerged as the biggest quick commerce player due to strong execution, improved unit economics and a cash pile exceeding $2 billion.

However, the experts noted that intensifying competition could force higher investments before the company becomes free-cash-flow positive. Blinkit remains loss-making as it continues to invest and expand into new markets.

The surge in the quick-commerce industry has pulled in Amazon, Walmart-controlled Flipkart and Reliance Retail into rapid deliveries, further heightening competition. The structural challenges of India’s supply chains, including fragmented sourcing, limited cold-chain capacity and uneven procurement, also make the market trickier than traditional e-commerce.

Dhindsa told Bloomberg he expects distinctions between e-commerce and quick commerce to fade over time. Blinkit already carries thousands of third-party sellers and sells everything from grocery to large electronics like, refrigerators and over 6,000 book titles.

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Nevertheless, he said the company will only enter categories where it can solve problems such as returns or sizing and has a genuine “right to win.”

With demand spreading beyond major metros, Blinkit plans to continue its investments in smaller towns. Dhindsa said infrastructure, rather than demand, is the bigger bottleneck, particularly the need for dense networks of dark stores and more efficient procurement.

To build that local ecosystem, Blinkit is shifting more sourcing to small entrepreneurs who run aggregation networks for produce, a move that also creates semi-skilled jobs.

Despite India being the only major market where rapid delivery continues to scale, it is also among the most competitive and cash-intensive markets.

Dhindsa said past lessons have made Blinkit more disciplined, especially around discounting. “We will not chase growth for the sake of growth,” he said, adding that they will only focus on things that are in the long term interests of the business.

The Blinkit CEO expects a sector shakeout as companies weigh ambition against capital costs and supply-chain complexity. The next leg may bring consolidation, sharper category bets and reduced discounting, he added.

“The pendulum has already swung once from skepticism to exuberance,” he said. “Whether the correction comes in three months or six months or next week, I do not know, but it will come.”