​Elevator Pitch

Blinkit is a quick commerce delivery app is currently the biggest market leader in the country right now with a market capture close to 50% (Based on new financials) and the only quick commerce delivery app to be successfully profitable contributing to the parent company (Zomato) an overall boost in its financials 

About the Product

Blinkit started out as Grofers back in 2013 to solve for unorganized and singular platform access for users in the grocery segment, it soon pivoted into an online grocery market as early as 2015 with funding from Soft Bank, Tiger global etc 

They faced massive hurdles competing with Bigbasket, Flipkart and Amazon grocery they quickly rebranded themselves to an affordable online grocery marketplace and an inventory control optimisation approach rather than becoming a sole marketplace for better inventory and GMV/Gross margins control 

The 2020 Pandemic was a gamechanger for Blinkit(Grofers) as it fueled GMV, growth numbers and other metrics and Blinkit was already optimising its supply chain management that was ready to take the surge in demand 

Post 2020 Blinkit started optimising for profitability and market capture, which is when Zomato acquired Grofers and rebranded it as Blinkit 

Zepto (Competitor) started the concept of 10 mins delivery around 2022 as a big differentiator but Blinkit and Swiggy were quick to capture their model replicate and start gaining sizeable market share 

Thanks to Blinkits pivot into a supply chain management-led approach they are currently operating at a close 50% current operating market capture at close to 25 million (⅓ of zomatos users) 

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Understanding Core Value Proposition

Blinkit delivers grocery and other items like any other platform but offers the widest possibility of SKUs for the customers to choose from and all under 10 mins, Blinkit was one of the first few platforms to experiment and go out of the grocery segment to bring in larger ticker size mid-frequent use products that customers typically have to go to an Amazon or Flipkart 

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A few examples of the high ticket price SKUs that are typically reserved for big E-commerce platforms 

Core value propositions 

Delivery under 10 mins Wide range of SKUs + Seamless user experience 

Understanding the Users

Blinkit has a mix of users comprising early adopters, professionals, mid-career professionals, newly discovered users 

Sharing small snippets from the users that I spoke to on WhatsApp to understand users from different demographics and usage preferences Mr. K late 30s - Non-frequent user of Zepto for groceries (Infrequent Zepto user)

Mr. Koushik late 30s - Non-frequent user of Zepto for groceries (Infrequent Zepto user)

Mr.Sathwik Early user of Zepto and Blinkit (Early 30s strong tech user) (Blinkit power user)

Ms.Aparna - Mid-40s (Discovering services and company from the power users, still prefers to order it from the nearest grocer) (Non-Quick service user)
Ms. Amelia -  Mid 20s (Frequent Zepto user discovering Blinkit’s SKUs and expressing Zeptos features) - Zepto user
After speaking to the nearest Grocery store owner who also provides free home delivery over WhatsApp/Call told me that, the majority of his customers are beyond 40-45, value trust over time, have tangible offline locations and are uncomfortable with technology for day-to-day household activities (Medium of communication is WhatsApp and call)

With the above examples and personal user conversation, we have accounted for a framework pain points of online ordering vs offline convenience

1. Convenience

Online: Delivery timelines and product availability 

In-store: Travel time, parking issues and crowding 

2. Cost

Online: Minimum order value, subscription pass and higher-priced products 

In-store: Price comparison and impulsive buying 

3. Product Quality

Online: Product freshness

In-store: Stock availability 

4. Customer Service

Online: Online customer service (Wait time is high)

In-store: In-person service (limited during crowded and low staff times)

5. Safety and Hygiene

Online: Coming from warehouses, users are concerned about hygiene and handling

In-store: Hygiene standards (Source of perishable goods are missing)

Blinkits delight and positive features from the above users (12 users total)

Understanding your ICP​

B2C Table

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we have multiple users of a product and not all of them can be our ICP for whom we make our strategies, we need to prioritize.

​*The 25 -35, Tier 1, comfortable with app culture is sufficiently exposed to the delivery apps, so we arent consciously choosing them for the experiment 

Competitor analysis ​

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Market share (top-down approach)

TAM (Total addressable market)

India's population 1.4 billion
India's urban population 36% - 1.4 billion x 36% = 504 million urban residents
504 million urban residents

*126 million families

Average grocery spends (HCES survey) - Urban 6500 per month(Rounded)

TAM - 504 million urban residents x INR 6500 x 12 months = $473 Billion

SAM (Serviceable addressable market)

TAM 473 billion x 10% of urban consumption = $47.3 billion
*Tallies with the current online delivery market share

SAM - Online grocery market share = %50 billion(rounded off) ~10% of urban consumption (CAGR 26%)

SOM (Serviceable Obtainable Market)

SAM - $50 Billion (Shared between Blinkit, Zepto, Instamart, Big Basket, Amazon, Flipkart, etc)

Total online grocery market share - $50 billion
Total online quick delivery market share - $14 billion (1/3 of the market online grocery delivery market)

Blinkits current market share is 45%

$14 billion x 45% = 6.3 billion dollars market share

*Extrapolation logic -
2022 - 37%
2024 - 45% (8% Growth)
2024 - 48% (E1) - (4% YoY growth + City expansion)
2025 - 55% (E2) - (4% YoY growth + City expansion + Inventory expansion)

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Designing Acquisition Channel

Blinkit is currently in the early scaling stage, a 10-year-old company that has achieved PMF, it is on a 1-10 journey, focused on gaining market share and expanding into a higher ceiling of addressable + serviceable markets

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Detailing your Acquisition Channel

We are choosing the three channels below to address

Partnership program - Blinkit x Axis bank credit card Product Integration - Mygate AppContent loop 
Referral program - Robust

​Partnership ProgramCo-branded credit cards

Blinkit is currently experiencing a user growth rate of 7-10% MoM. To achieve the next milestone of acquiring 1M additional customers, it is essential to partner with a channel with access to a large base of proven regular spenders.

The ideal partner should be one that can effectively drive these high-value customers to transact on the Blinkit platform, leveraging their existing spending behavior to enhance user acquisition and engagement for Blinkit

Blinkit customers currently order 20-30 times a month and boast an AOV of INR 600 higher than the competitors which typically refers to more trust and usage in the platform

With the current rise of credit cards in India with a CAGR of 20-25% standing at 88M active credit cards, All the major banks are in a race to acquire more customers for their credit cards, Co-branded credit has been around for a decade now, Co-branded credit cards

Co-branded

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Co-branded credit cards have largely solved problems around acquisition and customer loyalty, let's look at some previous success stories

Amazon Pay ICICI Bank Credit Card - 4 million users active on Amazon

Flipkart Axis Bank - 3.5 million users acquired

“The card has already crossed 3 million customers a few months back, the next milestone is expected soon,” Sanjeev Moghe, president and head (cards and payments) at Axis Bank

Indigo HDFC rewards card - 5% cash back
Activated 16% customers who never used their cards

Swiggy HDFC credit card - Launched a year back, switched to a direct cash-back-based program after initial success (Direct comparison)

Many co-branded credit cards in India has collaborated across travel, entertainment, hotel stays, grocery and fuel 

Co-branded cards have proven to acquire customers for both Banks and partner co. as there is mutual exchange of non-conflicting users interacting with each others service 

Why would the bank partner with Blinkit?
Blinkit has an MOU of 20 million users a month, with order frequency of 20-30 with an AOV of 600 ->> Assuming 2% activation, Assuming 400k users x 600 AOV x 20 frequent orders = 480,00,00,000

Issuing banks can access 480cr worth of transactions and potentially sell other financial products

How does this benefit Blinkit?

Since the collaboration goes both ways as per our above examples, we need to find a banking partner with similar interests for transaction value and who is also ready to expose their banking customers to our platform 

• HDFC - 20 million credit cards (Locked with Swiggy)
• SBI - 18.7 million cards (Locked with TATA Neu but regulatory concerns)
• ICICI Bank - 16.8 million cards (Potential partners)  🎖️
• Axis Bank - 13.9 million cards (Potential partners) 🎖️
  
  To keep things simple - we will not go into an elimination process but choose Axis Bank as they have proven experience in the credit card industry with quick market capture through collaborations and exciting CC rewards 

Flipkart Axis Bank credit card experience Axis Bank has omni channels for onboarding customers - Extremely popular for quick digital onboarding channels 

Performance marketing, banking sales channels, affiliates

**Observations from Swiggy HDFC card - Since the inception of the card, all the current HDFC cardholders have been called to sell the HDFC Swiggy card as an add-on to the current HDFC card (Personally have received a call 2 times) (Selling happens at both ends)

Friction?Target? 

The target pool can be initiated from Axis bank it has wide range of customer data on existing credit card users (Tier 1 city, 25-45 age, lifestyle spenders and spends for convenience) 

Friction - Since Axis bank comes with such large pool of users already, vetting of users for an add on card is a low-effort job for Axis and it will ensure continued spending on the Blinkit platform Basic

Metrics to be looked at
-Number of users successfully converted from Axis bank to download blinkit - Link/code/etc
-Number of users opted for Axis x Blinkit card
-Number of users serviced
-Number of users eligible Number of users cards issued
-Number of users transacting and average spending User flow

Sample screen for credit card onboarding

A sample copy of the card 

Serves ICP 1 and 2

​Product Integration

Blinkit ICP has been established at the top now going back to User 2 and User 3, a big % the ICP would stay in apartments, Apartments have specialized services such as private coffee shops, private saloons, private theatres, cafe, etc -

One of the most popular services in societies using MyGate is a security and community management platform primarily used by residential societies and gated communities in India. It offers a range of services, including visitor management, domestic staff tracking, delivery management, and communication tools for residents and provides various services across travel, house maintenance and other areas

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Mygate serves 25,000 homes across the country and 3.5 million residents, Mygate turned into a full-blown ad platform starting FY 23-24 and managed to do 100cr in revenue whilst offering the service to the residents for free of cost Potential targets

Apartment tiers
Grade A - Most expensive with all amenities (Supermarkets, saloons, mini theatres, pool etc) ❌
Grade B - Decent amenities with a simple grocery store, pool and convenience store for basics ✅
Grade C - No amenities towards F&B (Only physical spaces) ✅
Grade D - Basic houses with parking ✅

✅are clusters of users from the same apartment societies who have a pain point of ordering through different services, the physical inconvenience of going down and collecting them, permissions for grocery services each time 

With Mygate actively looking for partnerships, considering the above revenue numbers generated by Blinkit, Mygate can look at a product integration to tap into the 3.5 million residents to offer exclusive discounts and services for Mygate-powered communities 

Urban Company, Meru Cabs, DriveU and much more are already integrated into the Mygate ecosystem on a revenue and service share basis

Mygate collaborations
Friction to convenience is extremely low as Mygate is an ad platform, revenue share and section dedication has to be discussed

Product flow ->>

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Referral

Based on the ICP study and user calls, Blinkit has an impressive track record of under 10 minutes and multiple SKUs that were still unaware to the large public, to the above messages Blinkit has a very good word of mouth Source - User calls, X(Twitter posts, Delight features that Blinkit ships for every occasion 

The newest delight feature is a Rakshabandan package that is curated by Blinkit to be sent to your family and this is enabled for NRIs as well 

Blinkit is clearly winning in the customer delight features, which is brag-worthy for power users 

Target group inside Blinkit
Blinkit Customers should be targeted ideally after 20-25 under 10-minute delivery orders without any return or product quality complaints Ideal target scenario (Post 20-25 orders - Ask the customer to refer) 

Blinkits current referral flow is very basic, it shares a deep link for download across different platforms

Current referral program problems -
1. No benefits to the users upon referral 

2. No referral system (To re-track and see the benefits)

3. Basic messaging on referral 

4. Even power users don't get targeted for referral ​

A simple fix

1. No benefits to the users upon referral
(Introduce a referral mechanism to incentivize users to refer more)

2. No referral system
(Introduce a referral mechanism to incentivize users to refer more) (Utilise the coupon section to reward the user)​

3. Basic messaging on referral
(Improve comms and make it more personalized)

4. Even power users don't get targeted for referral
(Start the program for power users and gradually A/B test with other users)

Designing a referral program 

Quick commerce current industry CAC is running at INR 500 to INR 1500, for simplicity we can consider the average CAC is INR 1000, Blinkit can reward the user who referred the referee post the referee places their first order

Rferrer can enjoy the benefit of INR 1000 in their coupon section

Referrer user journey



Sample screen to target users at Delight
Referral screen tracker

THANK YOU

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