1P model means the company owns the inventory and acts as the retailer itself.

“We intend to move most of our business on our own inventory. ... the margin accretion should also happen in that timeframe.”

“Moving to 1P reduces the administrative burden, the licensing burden, all of that significantly for both us and the brands; operational metrics around availability, fill rates will improve.”

— Akshant Goyal, CFO

This points to strong organic growth within existing markets, implying that market penetration, product mix expansion, or frequency are improving rather than growth relying only on territorial expansion.

“Most of the current growth has come from existing polygons(delivery zones)... less than 5% of overall growth came from new expansion areas.”

“In a city like Delhi, which is fairly well covered geographically, we've seen a 70% year-on-year growth this quarter.”

— Albinder Dhinsa, CEO (BlinkIt)

Food delivery remains a core part of the business but growth deceleration raises concerns. Management’s cautious optimism around improved customer engagement metrics signals potential return to growth but is early in the cycle.

“Based on what we have seen so far in the first three weeks of the quarter, the year-on-year growth has sort of bottomed out and we are now seeing better app openings and resurrection rates." "The number of delivery partners is indicative. Log-in hours and delivery partner utilization continue to improve, making the business more efficient.”

— Akshant Goyal, CFO

Investors can regard this stance as a bet on convenience premium and brand differentiation, though it also means Blinkit perhaps cedes other segments to competitors. This focus can yield higher pricing power but also means vulnerability if consumer preferences evolve.

“When asked about competitors offering slower but larger order deliveries (e.g., "MAX saver" equivalents), Albinder dismisses the opportunity for such a segment, emphasizing Blinkit's focus on true convenience through 10-15 minute delivery.”

“We don’t see the opportunity there. That's why we are not doing that.”

“Maybe we are not smart enough so that could be the possible reason.”

— Albinder Dhinsa, CEO (BlinkIt)

Investors must be prepared for sustained margin compression or stable margins in exchange for top-line growth.

“While in the long term, margin expansion is possible, but in the near term, we are more focused on growth. Hence, the margins could remain around the mark they are today.”

— Akshant Goyal, CFO