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Eternal eyes 100% inventory play for Blinkit to improve margins

EntrackrEntrackr · 2m ago
Eternal eyes 100% inventory play for Blinkit to improve margins
Medial

Eternal eyes 100% inventory play for Blinkit to improve margins Eternal Limited, the company formerly known as Zomato, is gearing up for a strategic shift in its quick commerce arm, Blinkit, by planning to own inventory directly—a move enabled by its recent transition to an Indian-owned and controlled company (IOCC), according to a shareholder letter released by the company. The move will strengthen its operations and improve margins as it faces increased competition from both established players and new entrants in the quick commerce space. Eternal estimates that adopting a 100% inventory model would require less than Rs 1,000 crore in working capital. This amount is only about 5% of Blinkit's expected Net Order Value (NOV) of Rs 22,000 crore for FY25. In response to a question on how a pure-play inventory model could be achieved with Rs 1,000 crore, Eternal’s CFO Akshant Goyal explained that in quick commerce, inventory moves quickly. As a result, the company expects that working capital investments, relative to the overall scale of the business, will remain relatively low. The plan to keep inventory for BlinkIt comes on the back of its aggressive expansion in Q4 FY25, where it added 294 new stores and over 1 million sq ft of warehouse space, pushing its total store count to 1,301. However, such rapid growth led to widening EBITDA losses for Blinkit, from Rs 103 crore in Q3 to Rs 178 crore in Q4 of the last fiscal year (FY25). Even as short-term losses rise, Eternal remains bullish on the long-term profitability of the quick commerce space. The company is not planning private labels for now, but hinted that inventory control could eventually nudge EBITDA margins beyond the 5-6% of NOV it currently targets.

PhonePe enters quick commerce via Pincode: Report

EntrackrEntrackr · 6m ago
PhonePe enters quick commerce via Pincode: Report
Medial

PhonePe enters quick commerce via Pincode: Report Walmart-backed PhonePe is set to enter the quick commerce market through its e-commerce venture, Pincode, according to a media report. This marks the third attempt by the Sameer Nigam-led company in online retail. In April last year, PhonePe's Pincode app exited non-food categories on the Open Network for Digital Commerce (ONDC). It now offers only food delivery and unreserved ticket booking on ONDC. According to a report by ET, Pincode has fully pivoted to the quick commerce model, launching 15-minute deliveries in select areas of six cities: Bengaluru, Mumbai, New Delhi, Pune, Hyderabad, and Varanasi. The company plans to expand its coverage to about 25% in these markets in the coming weeks, with the full service rollout expected between April and June 2025. Entrackr has reached out to PhonePe for comments. Following Flipkart, PhonePe will be the second company from the same group to venture into the instant delivery market, with Zomato and Blinkit being other notable examples in this space. In recent months, both established and emerging companies have entered the quick commerce sector. Blinkit, Zepto, and Instamart lead the market, while newcomers like Flipkart, BigBasket, and Amazon are expanding their presence. Beyond groceries, there's a growing trend of 10-15 minute food deliveries, with Swiggy, Zomato, Blinkit, Zepto, Ola, and Magicpin sequentially announcing their entry into this space.

Dabur India expects mid-single digit revenue dip due to floods, inventory issues | Mint

LivemintLivemint · 9m ago
Dabur India expects mid-single digit revenue dip due to floods, inventory issues | Mint
Medial

- Dabur India is expected to report a mid-single-digit decline in consolidated revenue for the September quarter due to heavy rains and floods across parts of India. - Adverse weather conditions impacted out-of-home consumption and led to excess inventory in kirana stores. - Dabur India plans to correct distributor inventory in general trade channels, which were affected by disproportionate growth in quick commerce and modern trade. - The company's distributor inventory correction may lead to a temporary decline in top-line revenue. - However, the international business is expected to register double-digit constant currency growth in the top-line. - Investments in advertising and promotions continued during the quarter.

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