Local grocery stores were already beginning to identify the potential of grocery delivery applications before the sudden outbreak of the pandemic. After COVID, the trend of online grocery delivery apps for stores has boomed due to necessity, convenience and people’s inclination towards doorstep delivery. 


Indeed, the grocery delivery market is booming and if we talk about the Indian grocery market, it was valued at $2.9 billion in 2020 and now is forecasted to expand at a CAGR of 37.1% from 2021 to 2028. The online grocery delivery market has gained immense traction over the past couple of months due to the changing attitude of people, growing urbanization, and the tech-savvy generation who wants instant gratification from everything. 


There are many grocery delivery apps in India but Blinkit has been making headlines since its launch because it is the subsidiary company of popular food delivery app, Zomato. Blinkit is an Indian online grocery delivery app that operates in various Indian cities, allowing customers to order grocery products online. 


Today, Blinkit has created hype across the Indian grocery delivery market but how does it make money? What business model does it follow? You will get answers to all these questions in this detailed blog. Keep reading. 

What is Blinkit? 


Blinkit is an online grocery delivery company that allows customers to place online orders for daily essentials and get them delivered to their doorsteps. From fruits to chicken to snacks to vegetables to pulses and bakery products, get everything in 10-25 minutes at your preferred location. 


In short, Blinkit is an eCommerce marketplace that makes grocery shopping extremely easy and comfortable. It allows customers to shop at their favourite stores in their nearby areas and receive quick delivery. People can buy fruits, vegetables, flowers, meats and everything with just a few taps. 


Blinkit is India’s most used grocery delivery application and received more than $1 billion in funding from various investors. The company was founded in 2013 and has become a unicorn company with a $1.01 billion valuation. Blinkit follows a marketplace model, it has no personal stores or warehouses but the company ties up with local stores and delivery partners to fulfill customers’ online orders. 


Blinkit accepts orders via its Android and iOS apps and its website which allows grocery stores to update their menu and delivery providers to pick up the order in no time.

Fun Facts About Blinkit 

Brand Name 


Founded in 



Albinder Dhindsa, Saurabh Kumar


eCommerce, Online shopping


Gurgaon, India

Area Served 


Parent Organization




Operates in 

28 cities of India


Albinder and Saurabh observed a large void in the delivery industry. At the time, a lot of businesses were starting up, so they both recognized an opportunity. They were driven to oversee the chaotic hyperlocal marketplace where companies and consumers transacted.


They started laying the foundation for their startup at that point. To serve as a one-stop shop for customers' local delivery needs, they planned to offer on-demand pickup and drop services. This was carried out to assist customers with transportation from surrounding businesses, including restaurants, pharmacies, and grocery stores. At first, they both allowed customers to have groceries delivered from surrounding stores and supermarkets.


Blinkit is Acquired By Zomato 


After months of talks, discussions, loans, and whatnot, Zomato acquired Blinkit. 

  • On June 24, 2022, the board of the well-known food company run by Deepinder Goyal finally gave its approval for Blinkit's acquisition. 
  • Zomato had purchased the online grocery delivery business for $568 million in all-stock terms. 
  • The latter's board approved the purchase of up to 33,018 equity shares from Blink Commerce Pvt Ltd's stockholders. 
  • This was approved for a total purchase cost of Rs 4,447.48 crore ($569 mn), according to the company's BSE report. 
  • The $1 billion initial valuation of Blinkit was slashed by 43%. 

How Does Blinkit Deliver Grocery in 10- Minutes? 

Blinkit declared in June 2021 that it has completely redesigned its delivery operation, guaranteeing delivery within ten minutes of an online order being placed. 


Within the next 45 days, the well-known online food marketplace guarantees that orders placed in places where Blinkit is present will be delivered in less than ten minutes. Across the nation, individuals have expressed extreme disapproval of Blinkit for allegedly "exploiting" its personnel to fulfil their 10-minute delivery guarantee.


Dhindsa clarified how Blinkit can deliver food in 10 minutes by pointing out that one of the company's partner stores is located within 2 kilometres of the clients, which is a significant advantage. 


In addition to an acceptable number of partner stores in other useful cities like Mumbai, Kolkata, Bengaluru, etc., the company has more than 60 partner stores in Delhi and has expanded to over 30 partner stores in Gurgaon.


The company tries their best to deliver the grocery products the quickest, but there are several steps taking place in the background, 

  1. The customers place an order from the website or application 
  2. The platform connects customers with nearby grocery stores or supermarkets 
  3. Retail stores accept the online order request and start packing it 
  4. Blinkit platform connects delivery providers once the order gets ready to dispatch 
  5. The delivery partner takes the order and delivers the same to the customer’s preferred location 
  6. Based on the overall experience, customers and delivery providers rate the service and leave feedback 


Business Model of Blinkit 

The Blinkit business model is a skillfully constructed fusion of efficiency and innovation. Fundamentally, Blinkit functions as an online marketplace where customers may purchase a variety of goods, from groceries to cosmetics, and local vendors can display their wares. Here's a closer look at the essential components of the Blinkit business plan.

Marketplace Platform

BlinkIts idea of a marketplace where anybody can set up shop has revolutionized the industry. With the help of this strategy, local merchants and business owners can expand their reach and offer a wider range of goods to customers.

Strategy Based on Inventory

Blinkit keeps its inventory in-house, unlike several rivals that rely on joint ventures with neighbourhood retailers. They can exert more control over the availability and quality of their products thanks to this calculated move, guaranteeing that consumers will receive dependable and fresh groceries.

Smooth User Interface

Customers can shop for groceries with ease because of the user-friendly website and smartphone interfaces that are part of the Blinkit business model. By providing features like fast reorder choices and personalized recommendations, the platform improves the purchasing experience and increases consumer loyalty.

How Does Blinkit Make Money? Revenue Model of Blinkit 

Blinkit has benefited greatly from the new business model by being able to offer customers exceptional end-user delivery services. 


Blinkit has attained greatness through the skilful application of technology, the presence of partners, suppliers, alliance partners, and hundreds of products, including meats, baked goods, and flower delivery. 


How does Blinkit make money? This is the most commonly asked question. Blinkit generates income from a variety of sources. Among the prominent ones are:


Commission Based Revenue Model 

This represents Blinkit's main revenue stream. As you are aware, it collaborates with nearby supermarkets and wholesalers who offer their goods on its marketplace. Blinkit charges a commission for this, which is usually a portion of the sale price. 

Delivery Charges

Every order placed on Blinkit's platform is subject to a delivery fee. Usually, the delivery charge is between $2 and $3. Nonetheless, Blinkit provides a range of specials and discounts that might lower or even waive the shipping charge.

Fees for Subscriptions

Blinkit Prime is a subscription service that the company provides. For all orders over INR 4000, delivery is free for Blinkit Prime members. Additional advantages of Blinkit Prime include discounts on specific products and early access to future releases.


Blinkit offers advertising space for sale on its network. On Blinkit's website, app, and delivery trucks, advertisers can insert advertisements.


Blinkit offers discounts and promotions to its clients by forming alliances with other businesses. For instance, Blinkit and Amazon Prime have teamed up to provide free delivery for Blinkit customers on orders over $50 on Amazon.

How Much Does It Cost to Develop an App Similar to Blinkit?

As we mentioned earlier, the online grocery delivery market in India is booming because people these days prefer ordering products online rather than standing in a long checkout queue. On the other side, retail store owners and supermarkets are also implementing modern technology solutions to fulfil the rising needs of customers and stay afloat in the competitive market. 


Since an app like Blinkit made its footsteps in the market, every entrepreneur now wants to have a similar solution for their conventional business setup. Moreover, they also have questions like how much big giants have spent on their website and app development like Blinkit. 


Every startup or business must first start from scratch with very little capital to gain attention and funding from potential investors or the government. But before they can offer the concept and business plan with a demo—what our industry refers to as the MVP, or minimum viable product—they must have something operational.


Since we have already encountered a market behemoth, we are aware of every detail that needs to be taken care of to design and release our application. We may compute an estimated cost and expenses, revenues, profit, and loss by taking into account all of the project plans, features, modules, etc.


If we consider the parameters that are needed and important while deciding on cost, some of the major points are enlightened here for your reference: 

  • Project wireframing and prototyping
  • Application design and development
  • Marketing activities
  • Third-party API
  • Hosting and server charges
  • Maintenance charges 


If you want to know how to get a detailed quote, it would be recommended to consult an experienced on-demand app development company that can assist you in developing a seamless app like Blinkit that connects users, stores, delivery providers and admin. 

Enter the On-demand Grocery Delivery Market with the Blinkit Like App 


Within less than ten minutes, Blinkit has become the fastest grocery delivery service provider. The organization has become one of the major competitors in the market because of its increasing success graph. The success of this e-commerce is largely due to the solid Blinkit business model. Convenience, quickness, affordability, and scalability are essential components of the Blinkit business model that have contributed to a comprehensive presence and simple consumer attention. 


You can launch a quick-commerce startup or immediate delivery service like Blinkit from anywhere.