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Bloomberg Quint

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Image Credit: Bloomberg Quint

Blinkit's Margin Seen Improving After Shift To Inventory-Led Business Model

  • Eternal Ltd.-owned Blinkit's transition to an inventory-led business model is expected to expand operating margins, as per JM Financial analysts.
  • With this shift, Blinkit will directly sell to customers and maintain its inventory, moving away from reliance on third-party sellers.
  • The change follows approval of a 49.5% foreign ownership cap, aligning with regulations for an inventory-led e-commerce model.
  • Analysts estimate that Blinkit's Ebitda margin could improve by 50-110 basis points, leading to Ebitda break-even by December quarter of this fiscal.

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