‘Quick commerce burning Rs 50000000000 in cash, more than half of this is by…’ claims Zomato CEO Deepinder Goyal
GH News March 04, 2025 06:06 PM

Indias quick commerce sector is witnessing significant cash burn with companies collectively spending nearly Rs 5000 crore per quarter according to Deepinder Goyal founder and CEO of Zomato. Zomato-owned Blinkit contributes just 2-3% of this amount while maintaining a market share of 40-45%. Goyal claimed in an interview with Economic Times and emphasized that Blinkit focuses on sustainable growth and disciplined cash investment despite fierce competition in the sector.
Zepto Blinkit Instamart Cash Burn
Goyal said “The total burn for all companies in quick commerce is approximately Rs 5000 crore per quarter conservatively speaking. Zepto accounts for more than half of this. In comparison Blinkit’s burn rate is relatively low averaging Rs 35 crore per month last quarter.”
Reports from Economic Times indicated that quick commerce players were collectively burning around Rs 1500 crore every month. While Blinkit’s cash burn represents a small fraction of the industry’s total it still has a significant share of the market.
Zepto VS Blinkit VS Instamart
Zepto an independent player in the segment is a significant competitor burning Rs 2200-Rs 2300 crore last quarter alone. Despite this Blinkit has managed to grow its market share with disciplined investments and a focus on execution rather than deep discounting.
“They (Zepto) burned over Rs 2200 crore last quarter while we burned 4% of that but still gained market share. So how does it matter? We’ll focus on doing the right thing for the business” Goyal remarked.
A Citi Research report in February claimed that Blink Its market share at 41% followed by Swiggy Instamart at 23%. Zepto is reportedly at par or higher than Instamart in market share according to the same report. Other players in the space like Walmart-owned Flipkart Minutes Tata-backed Bigbasket and Amazon.
Zomato Losses
Blinkit CEO Albinder Dhindsa earlier claimed that much of the company’s cash burn was for expansion. Blinkit crossed the 1000 dark store milestone a quarter ahead of schedule and aims to reach 2000 dark stores by December 2025 advancing its timeline by a year.
However the increased cash burn impacted Blinkit’s adjusted EBITDA which showed a loss of Rs 103 crore in the October-December period compared to Rs 8 crore in the previous quarter.
Blinkit’s rising cash burn have also affected Zomato’s financial performance. The company reported a decline in profits for the October-December quarter leading to a 20% drop in Zomato’s share price since January 1. On Monday Zomatos stock closed marginally higher at Rs 222.05 on the BSE reflecting ongoing investor concerns.
Zepto’s IPO Plans
Zepto which raised over $1.3 billion in the past year has emerged as a big competitor. It leads in monthly active users according to BofA Research and plans to go public by 2025.