Blinkit CEO predicts industry shakeup amid competitors' cash crunch

India’s largest quick-commerce company expects a major shakeup in the industry as competitors run low on cash, but its chief says his firm is well-placed to push ahead with growth. Blinkit CEO Albinder Dhindsa said the current model - driven heavily by constant fundraising - is reaching a breaking point, and players will soon have to confront how long they can sustain deep losses.

Global backers such as SoftBank, Temasek and Middle Eastern sovereign funds have pumped billions into rapid-delivery startups, turning India into a crucial test market. While similar businesses in the US, Europe and parts of Asia have collapsed, India’s dense urban centers, cheaper labor and widespread digital payments offer some advantages. Still, profitability hinges on razor-sharp logistics and steady capital inflows. Despite rising capital needs, investors are treading carefully. Swiggy, a smaller competitor, is set to raise $1.1 billion through a share sale just a year after its $1.3 billion listing - and at roughly the same valuation. Zepto has also secured $450 million as it gears up for an IPO next year.