What owning inventory has done for Blinkit as Swiggy’s Instamart follows suit
Quick commerce platforms Blinkit and Swiggy's Instamart are transitioning from marketplace to inventory ownership models, driven by India's FDI rules that prohibit foreign-owned e-commerce firms from holding stock. Blinkit, now 90-95% owned inventory, turned profitable after the shift. Swiggy capped foreign shareholding to become an Indian-owned company, enabling Instamart to own inventory and project margin gains of 80 basis points. The inventory model reduces operational overhead and gives platforms greater control over pricing and assortment.
Key points
- FDI rules forced Blinkit and Instamart to cap foreign ownership before shifting to inventory ownership
- Blinkit's shift improved profitability despite modest gross margin growth, via overhead reduction
- Instamart projects 80 basis points margin gain from inventory ownership transition
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