Blinkit revenue doubles YoY in Q3, ad revenue grows faster than order value

Blinkit, Zomato’s quick-commerce arm, saw its gross order value (GOV) doubling to Rs 3,542 crore in Q3FY24, registering a growth of 103 percent year-on-year (YoY) from Rs 1,749 crore clocked in Q3FY23.

While the company’s total order value grew 103 percent, its revenue from ads outpaced that and registered an increase of 220 percent YoY during the October-December quarter. The company did not specifically provide how much it earned through ads on the platform.

To be sure, the growth of over 200 percent was also because the total revenue from ads was coming off of a low base.

Blinkit said it had 557 advertisers on its platform as of Q3FY24, an increase of 130 percent YoY from 242 advertisers in Q3FY23. The top 20 advertisers accounted for 40 percent of the total revenue from ads for Blinkit, down from a share of 61 percent during the same period in the previous fiscal. The drop in share meant that the Gurugram-based company was diversifying its base and relying less on a select set of advertisers.

Quick-commerce being one of the most transacted categories online, easy-to-use self-serve ad platform and measurable and high return on investments (ROI) on ad spends were the three factors that helped improve ad monetisation for Blinkit.

Key operating metrics

Blinkit showed a strong improvement in its financial performance across the board, driven by festive season demand and a spike in business during New Years Eve.

Blinkit delivered 55.8 million orders in Q3FY24 or about 62,000 orders per day which was an increase of 77 percent from 31.6 million orders in Q3FY23. Even the average order value (AOV) jumped from Rs 553 to Rs 635 during the same period.

“While most of the GOV growth was order volume-led, part of it was also driven by an increase in average order value, which continued to benefit from a higher mix of high ASP (average selling price) categories such as electronics, festive needs, home décor, among others,” Albinder Dhindsa, CEO of Blinkit said.

Quick-commerce firms like Blinkit, Swiggy Instamart, Zepto and others all had their best every New Years Eve as order volumes touched historic highs, as reported in January . Blinkit even delivered the latest mobile phones, including the iPhone 15, and Indian cricket team jerseys which pushed up the AOVs in the October-December period.

To cater to the growing demand, Blinkit also added 40 new stores on a net basis in Q3FY24, taking the total store count to 451. Blinkit had earlier said it will end FY24 with a total of 480 stores.

About 90 percent of Blinkit's GOV comes from the top eight cities, but it is toying with the idea of increasing presence in other regions across India.

"In the last quarter, we launched stores in two new cities - Goa and Agra...we are selectively adding a couple of stores to test the waters in high potential new cities. So far, all the new cities that we have launched in are
showing good potential and we will look to subsequently scale these cities as well," Dhindsa said.