India’s fast-growing quick commerce industry is heading toward a major correction, according to Blinkit CEO Albinder Dhindsa, who believes the sector’s breakneck expansion is becoming unsustainable. Speaking in a recent interview, Dhindsa said years of aggressive fundraising and heavy discounting have pushed several players to the edge as investor appetite cools.
Backed by global capital giants including SoftBank, Temasek and major Middle Eastern funds, India has become the world’s most ambitious market for ultra-fast deliveries. Dense city clusters, low labor costs and seamless digital payments helped fuel rapid adoption. But Dhindsa warns that the economics of 10-minute delivery rely heavily on continued access to massive capital something rivals are struggling to secure.
Swiggy, Blinkit’s key competitor, is preparing a $1.1 billion share sale, nearly matching the value of its 2023 IPO, highlighting how urgently fresh funds are needed. Zepto’s $450 million raise ahead of its planned listing reinforces the sector’s high cash burn.
Analysts at Bernstein Societe Generale recently identified Blinkit, owned by Eternal Ltd., as the market frontrunner due to strong execution, resilient unit economics and more than $2 billion in cash reserves. Still, Blinkit remains unprofitable as it continues to expand into new cities and categories.
The competitive landscape is intensifying as Amazon, Flipkart and Reliance Retail push deeper into rapid delivery. Dhindsa says India’s fragmented supply chains and limited cold chain capacity make scaling even more challenging especially in smaller towns where infrastructure remains the biggest barrier.
Blinkit is now focusing on building hyper local procurement networks and strategically expanding dark stores to improve efficiency. Dhindsa stresses that the company will avoid growth driven solely by discounts and instead prioritize long-term profitability.
He expects a market reset marked by consolidation, sharper category selection and disciplined spending. “A correction is inevitable,” Dhindsa said, adding that the timing is uncertain but the shift is already underway.
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