Blinkit Shifts to Variable Commission Model to Boost Profitability Amid Quick Commerce Battle

Blinkit Shifts to Variable Commission Model to Boost Profitability

Zomato-owned quick commerce platform Blinkit is set to implement a significant change in its revenue model, moving from fixed commission rates to a variable structure based on product selling prices. This strategic pivot, scheduled to take effect from March 13, aims to improve the company's take rate amid growing competition in India's rapidly expanding quick commerce sector.

New Commission Structure Details

Under the current system, Blinkit charges sellers and brands a fixed commission ranging from 3% to 18% depending on product categories. The new variable model will adjust commission rates based on the selling price of items, potentially allowing the company to optimize revenue across different price points and product types.

This commission restructuring comes as a strategic response to financial pressures, with Blinkit reporting an adjusted EBITDA loss of ₹103 crore in Q3 FY25, a significant increase from the ₹8 crore loss recorded in the previous quarter.

Industry-Wide Commission Adjustments

Blinkit isn't alone in revising its commission structure. Competitor Swiggy Instamart is reportedly planning to increase its commission rate from 15% to approximately 20-22%, indicating an industry-wide movement toward improved unit economics in the quick commerce space.

These adjustments reflect the growing need for sustainable business models in a sector characterized by:

• High operational costs associated with dark store networks
• Intense competitive pressure from established and emerging players
• Rising customer expectations for rapid delivery times
• The necessity to balance growth with path to profitability

Aggressive Expansion Amid Competition

The commission restructuring comes during a period of aggressive expansion for Blinkit. The company added 216 new dark stores in the December quarter of FY25, bringing its total to 1,007 locations nationwide. Blinkit has announced ambitious plans to nearly double this network to 2,000 dark stores by Q3 FY26.

This expansion occurs against the backdrop of intensifying competition in India's quick commerce market:

• Swiggy Instamart operated 705 dark stores as of December 31, 2024, with a presence in 76 cities
• Zepto doubled its dark store count to 700 in 2024, up from 350 the previous year
• Established e-commerce giants like Flipkart, Amazon, and BigBasket have pivoted toward quick commerce models
• New specialized entrants such as Blip, Farmako, and Swish are targeting specific product categories

Quick Commerce Market Growth

The strategic changes in commission structures reflect the significant growth potential in India's quick commerce sector. Together, Blinkit, Instamart, and Zepto recorded combined sales approaching $1 billion in FY24, demonstrating substantial consumer adoption of rapid delivery services.

According to industry analysts, the quick commerce market is witnessing an aggressive "land grab" as players compete for market share and establish presence across urban centers. This has led to substantial investments in infrastructure and high cash burn rates across the industry.

Recent Industry Controversy

The competitive intensity in the sector recently sparked controversy when Zomato co-founder publicly suggested that Zepto alone accounted for half of the estimated ₹5,000 crore quarterly burn witnessed by the quick commerce ecosystem. Zepto's leadership promptly refuted these claims as "verifiably untrue," highlighting the tensions in this high-stakes market.

As quick commerce platforms adjust their revenue models and expand operations, industry observers anticipate further consolidation and evolving business strategies as companies balance growth ambitions with the imperative of sustainable economics.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Rupee Holds Steady Against Dollar Despite FII Exodus and Market Volatility

Rupee Holds Steady Against Dollar Despite Foreign Investor Exodus

The Indian Rupee maintained its position on Friday as favorable movements in the dollar index and crude oil prices provided support amid continued selling by foreign institutional investors (FIIs).

According to Bloomberg data, the local currency opened flat at 87.11 against the US dollar, unchanged from Thursday's closing rate.

Dollar Weakness and Oil Price Decline Provide Support

The Dollar Index weakened considerably, reaching a four-month low of 103.76 on Friday. This decline in the greenback's strength typically creates favorable conditions for emerging market currencies like the Indian Rupee.

Simultaneously, global crude oil prices have experienced a significant correction, tumbling approximately 15% from their recent peak. As India imports over 80% of its oil requirements, lower crude prices generally reduce the country's import bill and ease pressure on the Rupee.

Despite these supportive external factors, the Rupee has only managed a modest appreciation of 50 paise to 87.00 per dollar, indicating that other forces are tempering its potential gains.

Domestic Indicators Show Resilience

Several domestic economic indicators have displayed resilience, contributing to the Rupee's stability:

• A noticeable rebound in services PMI (Purchasing Managers' Index), suggesting strength in the services sector
• Fresh liquidity initiatives from the Reserve Bank of India (RBI) to support market stability

According to market experts, despite these positive developments, the Rupee's appreciation has remained subdued primarily due to tight liquidity conditions prevailing in the banking system.

Foreign Investor Outflows Continue

A significant headwind for the Rupee has been the persistent selling by foreign portfolio investors (FPIs). In 2025 so far, overseas investors have net sold equities worth an astounding Rs 1.34 lakh crore, according to data from the National Securities Depository Limited (NSDL).

This substantial outflow of foreign capital has created downward pressure on the Indian currency, offsetting many of the positive factors that would typically drive appreciation.

Crude Oil Market Trends

Oil prices are on track for their most significant weekly decline since October. As of 9:23 a.m. IST on Friday, Brent crude was trading up 0.24% at $69.63 a barrel, while West Texas Intermediate (WTI) had risen 0.17% to $66.47.

This continued weakness in global oil prices bodes well for India's fiscal health and could provide further support for the Rupee if the trend persists.

Global Market Context

The broader Asian market context remains challenging, with stocks in the Asia-Pacific region declining on Friday following a tumble on Wall Street overnight. This occurred despite US President Donald Trump's announcement that he would exempt Mexico and Canada from new tariffs on goods and services that fall under the North American trade agreement (USMCA).

Market analysts suggest that once liquidity conditions improve, the Rupee could make a stronger comeback. For now, however, the currency appears confined within a trading range of 86.80 to 87.30 against the US dollar.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Trump Signs Executive Order to Establish US Bitcoin Reserve, Price Falls 5.7%

In a landmark move for cryptocurrency adoption, US President Donald Trump signed an executive order on Thursday establishing a government-held Bitcoin reserve. This significant policy shift marks a dramatic evolution in the administration's approach to digital assets, particularly for a president who once dismissed Bitcoin as a "scam."

Bitcoin Price Reacts to the News

Following the announcement, Bitcoin's price experienced a substantial drop of up to 5.7%. Around 0100 GMT, the world's largest cryptocurrency had fallen to $84,707, retreating from its recent historic high of over $100,000.

The price movement came after statements from White House artificial intelligence and cryptocurrency advisor David Sacks, who clarified details about the new reserve on social media platform X.

Details of the Bitcoin Reserve Plan

According to Sacks, who serves as Trump's "crypto czar," the Strategic Bitcoin Reserve will be established using cryptocurrency already in government possession. The reserve will primarily consist of Bitcoin that was seized during criminal and civil asset forfeiture proceedings.

Key aspects of the executive order include:

• Retention of approximately 200,000 bitcoins from government seizures
• A commitment that the US will not sell any Bitcoin deposited into the reserve
• Mandate for a comprehensive audit of all government Bitcoin holdings
• Authorization for Treasury and Commerce departments to explore budget-neutral strategies to acquire additional Bitcoin
• Creation of a separate "US Digital Asset Stockpile" for holding seized cryptocurrencies other than Bitcoin

A Shift in Government Strategy

Sacks revealed a startling fact about previous government practices, noting that over the past decade, the US had sold approximately 195,000 bitcoins for just $366 million. At current prices, those same holdings would be worth an estimated $17 billion had they been retained.

"The Reserve is like a digital Fort Knox for the cryptocurrency often called 'digital gold,'" Sacks explained, emphasizing that the Bitcoin will be kept as a store of value rather than liquidated.

Trump's Evolution on Cryptocurrency

The executive order represents a remarkable transformation in President Trump's stance toward cryptocurrency. Having once publicly criticized Bitcoin, he has now positioned himself as perhaps the digital asset industry's strongest political ally.

His administration has actively rolled back regulatory measures affecting the crypto sector and urged Congress to pass crypto-friendly legislation. Further demonstrating this commitment, Trump is scheduled to host industry leaders at the White House for a "Crypto Summit" on Friday.

On Sunday, the president caused a brief market spike after unexpectedly expressing interest in the government holding other cryptocurrencies such as XRP, Solana, and Cardano.

The Bigger Picture for Bitcoin

Created in response to the 2008 financial crisis by an anonymous developer or group known as Satoshi Nakamoto, Bitcoin has a fixed supply of 21 million coins. This scarcity has led many investors to view it as a potential hedge against inflation.

Some proponents have even suggested that a strategic Bitcoin reserve could eventually help address the US national debt, though economists remain divided on this assertion.

Cryptocurrency markets experienced significant gains following Trump's election win in November 2024, with Bitcoin eventually crossing the $100,000 threshold for the first time. However, prices have since moderated as the market digests new regulatory developments.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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