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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.

Dehaat joins B2B agrifood companies in launching consumer brand

Economic TimesEconomic Times · 1y ago
Dehaat joins B2B agrifood companies in launching consumer brand
Medial

Agritech startup Dehaat has launched its own consumer brand, Honest Farms, amid a challenging market for agriculture technology startups. With over 200 stock keeping units (SKU) in categories such as pulses, rice, and spices, Dehaat aims to tap into the increasing demand for branded alternatives in the food market. The company, which operates at Rs 3 crore monthly revenue and has raised $221 million in funding, is focusing on attracting the first 100,000 consumers through product quality rather than heavy marketing. Private labels have proven to be successful for other market linkage services in the food and agritech space, allowing them to increase margins while retaining their core business.

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