Blinkit Plans Pivot To Inventory-Led Model From September: Report

Eternal’s quick commerce arm Blinkit is reportedly switching to an inventory-led model from September 1. Following the move, the company will purchase goods directly from sellers, rather than merely stocking them.

An ET report said that Blinkit had already mailed its sellers, informing them of the transition to a new model.

Currently, the marketplace model enables sellers to list their products and pay Blinkit for storing them in its warehouses. In another model, Blinkit allows renowned brands and selected sellers to buy products in bulk and sell them through the platform.

The change in its model will now allow Blinkit to purchase inventory and make product listings on its own.

Inc42 has sent queries to the company to confirm the development. The story will be updated on receiving the response.

“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 wrote in its email to the sellers. “(From August 31) Your inventory moves from your books to BCPL (Blinkit),” it added.

Blinkit also told the sellers that if they are not willing to transition, their inventory will be returned after deducting reverse logistics costs.

The transition to the new model is not sudden asEternal’s plan to change its inventory model came to the fore in April.

Eternal’s IOCC Status Led Transition

In an effort to “reinforce” its identity as an Indian-owned-and-controlled company (IOCC), Eternal approved the proposal to cap the foreign shareholding at 49.5% in May.

During the Q4 earnings call, Eternal CFO Akshant Goyal said that as an IOCC, the company now has an option to also own inventory in the quick commerce business, besides running a marketplace business.

Back then, the company did not disclose whether Eternal was transitioning towards 100% owned inventory (1P) or a hybrid 1P+3P model going forward.

Goyal said, “If Blinkit owned 100% of the inventory in FY25, Eternal would have deployed less than INR 1,000 Cr of working capital towards inventory ownership (about 5% of FY25 NOV of about INR 22,000 Cr).”

Prior to that, the foodtech giant said that IOCC classification will help build safeguards to maintain domestic control in the absence of an “identifiable promoter group holding a substantial stake” in the company.

Eternal said that the IOCC tag will provide Eternal “greater operational flexibility” and unlock new opportunities in the quick commerce space. It will help Blinkit transition to an “inventory ownership” model from the current marketplace model led by third-party sellers, the company said back then.

Pivoting to the inventory model will help it in driving growth by introducing new and underserved categories such as home décor, gourmet foods, toys, pooja items, and seasonal merchandise, it mentioned.

Besides, it also said that the inventory model will help the company enhance margins in fragmented or unbranded categories as well as established FMCG categories

“This change (pivoting to inventory model) aligns with our strategy to optimise the assortment, quality, and value mix for our customers in the quick commerce business. While this will make the business moderately more working capital-intensive, we will use our balance sheet carefully where we believe the strong RoCE (return on capital employed) potential and long-term value creation justify the approach,” said Eternal in April.

Blinkit’s Market Share Improves

The development comes at a time when Blinkit’s market share in the quick commerce market increased in the first quarter of the current financial year.

Blinkit gained market share in Q1 FY26 as it slowed down their aggressive expansion plans, as per an ICICI Securities report.

Eternal’s Blinkit saw its gross order value grow over 25% on a quarter or quarter basis in Q1 FY26.

On the other hand, Swiggy’s Instamart witnessed a 22% QoQ growth in its GOV in the quarter under consideration, the brokerage report said.

The growth for the quick commerce sector was below 20% in Q1 FY26, implying that both Blinkit and Instamart gained market share.

The report further anticipated Blinkit to post an adjusted EBITDA loss of INR 150 Cr during the quarter as against an adjusted EBITDA loss of INR 178 Cr in Q4 FY25.

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