Albinder Dhindsa, CEO of Zomato-owned Blinkit, has said that the company is looking to increase the number of its micro-fulfillment centers or dark stores by around 40 per cent in the next 12 months.
The company currently has over 400 dark stores that act as warehouses.
In an earnings statement, the CEO was reported by PTI, "We have identified several new high potential neighborhoods in existing as well as new cities. We should start seeing growth in net dark store numbers going forward."
He further added, “We are looking for opportunities to open stores in high potential areas based on the data generated by our systems, manage bandwidth and manufacture supply times.”
However, Dhindsa said that unlike the food delivery business, growth in the quick commerce business is dependent on various factors such as product availability from the brand, vendor capability and supply chain capability.
“When we feel confident that we can provide a great experience for our customers in a high potential location, do we begin the process of opening new stores. May increase the number of stores by around 30-40 per cent in the next 12 months," he said.
According to Dhindsa, "It will also depend on the company's ability to find the best and most cost-effective locations for these stores.
In the third quarter, he said Blinkit had less of an impact than the food delivery business because "our typical purchase basket tends to be more skewed toward essential/non-discretionary spending."
The slight downward pressure on average order value could be due to slowdown where customers are preferring to buy smaller packs rather than bigger packs. "Overall, last quarter was our highest ever in terms of new and returning customers," he added.
Blinkit posted revenue of ₹301 crore in the third quarter ended December 31, 2022, up 28 percent quarter-on-quarter (QoQ), while gross order value (GOV) grew by 18 percent to ₹1,749 crore Stay QoQ.
“All of this growth has come without any expansion in our dark store footprint,” Dhindsa said.
On advertising revenue becoming a meaningful source of revenue for Blinkit, he added, "We expect advertising revenue to be a significant driver for revenue per order growth going forward."
In line with that vision, he said, “We launched our new self-serve advertising platform for brands – Blinkit Brand Central – in December 2022. The self-serve platform allows brands to bid on search keywords of their interest, with as well as customized brand stores on the platform."
Blinkit has become a preferred platform for advertising and engagement for over 500 brands, he added, “These brands, large and emerging, use us to build brand awareness and drive their sales on the platform with display advertising.” We do."
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