Blinkit CEO warns 10-minute delivery bubble may be close to bursting; says, 'We will not chase growth'

India’s quick-commerce sector, once the country’s most aggressive experiment in ultra-fast delivery, is now entering a period of serious correction.

Eternal-owned Blinkit's CEO Albinder Dhindsa has warned that a reset is looming as rising capital needs collide with waning investor appetite, putting pressure on companies that have relied on rapid expansion and prolonged cash burn to stay competitive.

Dhindsa told Bloomberg that the model which enabled 10-20-minute deliveries across major cities is now approaching its limits. The industry grew on the back of non-stop fundraising, aggressive discounting and intense competition among platforms such as Swiggy Instamart, Blinkit, Zepto and BigBasket.

Global investors including SoftBank, Temasek and large Middle Eastern sovereign funds poured billions into the sector, encouraged by India’s dense urban clusters, lower labour costs and widespread digital payments.

Comparable ventures in the US, Europe and parts of Asia shuttered, but India continued to scale. The long-term challenge, Dhindsa said, is whether companies can keep building dense, efficient delivery networks while raising enough capital to support the burn.

Funding, however, is tightening even as operating losses remain deep.

Earlier this week, Swiggy board approved the move to raise $1.1 billion via QIP. Zepto has raised $450 million ahead of a planned listing next year. Both cases indicate the high cash intensity of a business that promises deliveries of everything from vegetables to iPhones within minutes.

“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, noted that Blinkit, owned by Eternal Ltd., has emerged as the largest quick-commerce player due to strong execution, improving unit economics and a cash pile exceeding $2 billion.

But they also said intensifying competition could require higher investments before Blinkit becomes free-cash-flow positive.

The company remains loss-making as it expands into new markets and broadens its assortment, which now includes thousands of third-party sellers, large appliances and more than 6,000 book titles.

Dhindsa expects the line between e-commerce and quick commerce to fade, but said Blinkit will only enter categories where it can solve problems such as returns, sizing and fulfilment, and where it has a clear “right to win.”

The competition is also getting intense. Amazon, Flipkart and Reliance Retail have stepped up rapid-delivery offerings. Swiggy recently ran its Mega Savings Festival offering zero delivery, handling and surge fees, while Zepto rolled out similar promotions.

Dhindsa said Blinkit has become more disciplined about discounts and will not chase growth for the sake of growth.

Dhindsa further said that the company is increasing sourcing from small entrepreneurs who run produce aggregation networks. Despite India being the only major market where rapid delivery continues to scale, Dhindsa believes the sector is poised for consolidation as companies weigh ambition against capital costs.

A correction, he said, could reshape India’s consumer internet landscape by revealing the true demand for fast deliveries once discounts recede.

“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.”