India’s Quick Commerce Bubble Nears Breaking Point, Warns Blinkit CEO Albinder Dhindsa

India’s booming quick commerce industry, once celebrated as the world’s fastest-growing experiment in ultra-fast delivery, may be approaching a sharp correction. According to Blinkit CEO Albinder Dhindsa, the current model — built on aggressive fundraising and high cash burn — is becoming unsustainable as global investors grow more cautious.

In an interview, Dhindsa said the sector is “hurtling toward a shakeout”, driven by rising capital needs, slowing investor appetite, and growing pressure on companies that still absorb steep losses to fuel rapid expansion.

Billions Have Flowed into the Sector — But the Model Is Straining

Global investors, including:

• SoftBank Group Corp.

• Temasek Holdings Pte.

• Middle Eastern sovereign wealth funds

have poured billions of dollars into India’s quick commerce segment over the past few years. This made India the world’s most closely watched test market for 10-minute deliveries across categories such as groceries, electronics, and everyday essentials.

But Dhindsa warned that the relentless capital inflows that once supported the sector are now reaching their limit.

He said companies must soon decide how long they can continue absorbing deep losses, especially as fundraising cycles stretch out and valuations flatten.

Why India Became the Biggest Quick Commerce Laboratory?

While many quick commerce players across the US, Europe and Asia collapsed or scaled down, India remained an exception because of:

• Dense urban clusters

• Lower labour costs

• Widely adopted digital payments

These factors made 10–20 minute deliveries possible at scale.
However, Dhindsa pointed out that despite these advantages, the economy remains heavily dependent on:

• Logistics efficiency

• Optimised dark store networks

• A continuous flow of capital

Funding Pressure Mounts Across Rivals

Dhindsa’s warning comes at a time when funding requirements are increasing sharply across competitors:

Swiggy Instamart

• Preparing a $1.1 billion share sale

• Barely one year after its $1.3 billion IPO

• The sale is expected at roughly the same valuation as the IPO price

This highlights investor caution even as capital needs continue rising.

Zepto

• Raised $450 million

• Ahead of a planned IPO next year

Both cases show that companies need huge amounts of capital just to sustain the demand for rapid deliveries — everything from eggs to iPhones, delivered in minutes.

Dhindsa said such an imbalance often leads to very swift corrections that “catch people by surprise.”

Also Read: Despite Tariff Tensions, India Remains Key Growth Market for Google, Says Country Head Preeti Lobana

Investor Sentiment Shifts as Risks Rise

Swiggy’s upcoming fundraising plan — with shares still trading close to their issue price — signals a broader shift in how investors view quick commerce.

Earlier, rapid expansion was seen as a sign of dominance. But now, investors are evaluating:

• Profitability timelines

• Unit economics

• Long-term differentiation

Dhindsa said this correction will reshape India’s consumer tech landscape, showing which brands have truly built services customers are willing to pay more for, as opposed to relying on discount-driven demand.

Analysts See Blinkit as the Frontrunner — But Still Unprofitable

Brokerage Bernstein Societe Generale Group recently said:

• Blinkit — now owned by Eternal Ltd. — is the long-term frontrunner

• Strong execution

• Strong unit economics

• More than $2 billion in cash reserves

However, analysts also cautioned:

• Rising competition may force higher investments

• Blinkit is still unprofitable

• Heavy spending required to enter new markets could delay free cash flow positivity

Competition Intensifies as Giants Enter the Arena

India’s quick commerce boom has attracted the country’s biggest retail players:

• Amazon

• Walmart-owned Flipkart

• Mukesh Ambani’s Reliance Retail

Their entry has made competition fiercer in major cities, driving higher cash burn and pushing companies to focus on:

• Better supply chains

• Larger assortments

• Faster deliveries

Dhindsa noted that India’s fragmented procurement networks and limited cold-chain infrastructure make quick commerce more challenging than legacy e-commerce.

“Online Retail and Quick Commerce Will Merge Over Time” — Dhindsa

Dhindsa believes the boundaries between:

• Traditional e-commerce

• Quick commerce

will eventually blur.

Blinkit already offers:

• Thousands of third-party sellers

• Large appliances like refrigerators

• Over 6,000 book titles

But Dhindsa said the company will only expand into categories where it can solve issues like returns, fit, or sizing, particularly in fashion — and where Blinkit has a clear right to win.

Smaller Towns Are the Next Frontier — Infrastructure Is the Bottleneck

Demand is now spreading beyond metro cities into:

• Tier-2 towns

• Smaller urban clusters

• Semi-rural regions

But Dhindsa said the main constraint is not demand, but infrastructure.

Quick commerce requires:

• Dense dark store networks

• Efficient procurement hubs

• Robust cold chains

These are still lacking in many parts of India.

To bridge this gap, Blinkit is shifting procurement toward local entrepreneurs who supply fruits, vegetables, and essentials. This creates:

• Semi-skilled jobs

• Warehouse roles

• Opportunities for workers returning to their hometowns

Sector Faces Its Most Critical Phase Yet

India is the only major market where quick commerce is still scaling fast.

Yet it also has some of the highest competitive cash burns globally.

Dhindsa said Blinkit has learned from past mistakes where heavy discounting inflated demand but damaged economics.

He emphasised:

• “We will not chase growth for the sake of growth.”

• “We will only do what benefits the business long term.”

He expects a major sector reset as players adjust to:

• Lower discounts

• Sharper category choices

• Higher capital costs

• Reality-based expansion

“The correction will come,” Dhindsa said. “Whether in three months, six months, or next week — it will come.”

Click here to explore
Gift Nifty
FII DII Data
IPO