CHENNAI: Quick commerce platform Blinkit's Chief Executive Officer Albinder Dhindsa has said in an interview that the sector is facing an upheaval as the company’s rivals are experiencing a cash crunch. He added that Blinkit will thrive and continue to expand in the country.
The q-com sector has always depended on fundings from investors, which have reached its limit, he added. Dhindsa said companies will have to decide how long they can keep absorbing steep losses. He added the correction in the sector could come at any time -- in the next three or six months or even next week.
Global investors like Softbank Group Corp., Temasek Holdings Pte, and sovereign funds from West Asia have invested heavily in India’s fastest growing e-commerce sector. Its competitors such as Swiggy and Zepto are planning to raise funds through IPO and other means. Swiggy’s qualified institutional placement (QIP) of Rs 10,000 crore opened on Tuesday. Meanwhile, Zepto is preparing another infusion of Rs $450 million.
"Usually when this kind of imbalance exists, the correction is very swift. It often catches people by surprise,” he said.
Analysts at Bernstein Societe Generale Group last month said Blinkit has emerged as the long-term frontrunner, citing execution, strong unit economics and more than $2 billion in cash. Still, they warned that rising competition could force heavier investment before the company turns free cash flow positive. Blinkit remains unprofitable, despite its cash pile, as it keeps investing to enter new markets.
The q-commerce sector has grown to a $5.38 billion market in 2025, a rise of 17% from last year. It is projected to go up to $30 billion by 2030.
Dhindsa expects the line between traditional online retail and quick commerce to blur with time.
“We will not chase growth for the sake of growth. We will not do anything that is not in the long term interests of the business,” Dhindsa said.
The boom in the sector has drawn the attention of Amazon Inc., Walmart-backed Flipkart, Mukesh Ambani’s Reliance Retail Ltd, and Tata Group-owned BigBasket. One of India's biggest ride-hailing apps Rapido is also planning to foray into the sector.
He expects a sector reset as companies reconcile ambition with capital costs and supply chain complexity. Consolidation, sharper category selection and changes in discounting may define the next phase, he said.
“The pendulum has already swung once from skepticism to exuberance,” Dhindsa said. “Whether the correction comes in three months or six months or next week, I do not know, but it will come.”