Blinkit Shifts to Inventory-Led Model After Becoming Fully Indian-Owned

Gurugram-based quick commerce platform Blinkit is transforming its business operations.
The company is transitioning to an inventory-led model beginning September 1 this year.
This shift comes after its parent company, Eternal, became an Indian-owned and controlled company (IOCC).
The move aligns Blinkit’s structure with India’s foreign direct investment (FDI) regulations.

What the New Inventory-Led Model Means

Blinkit has traditionally operated under a hybrid model.
It offered both a marketplace setup and a selective inventory management system.
In the marketplace model, sellers list their products and pay for warehouse storage.
Blinkit stored these goods but did not own them.
A second model involved trusted brands selling in bulk through the platform.

Under the new system, Blinkit will buy products directly from sellers and brands.
It will then manage inventory and list items directly on its app and website.
This marks a major operational change for Blinkit’s supply chain and seller engagement strategies.

Blinkit’s Email to Sellers Outlines New Model

On Saturday, Blinkit informed its seller network via email.
The platform gave sellers until July 30 to opt into the new system.
After this deadline, unapproved sellers cannot add inventory or create new listings.
From August 31, all inventory will be officially transferred to Blinkit’s books.
The company clarified that reverse logistics fees will apply for returned unsold stock.

This change means Blinkit assumes complete responsibility for inventory movement and sale.
Sellers will no longer handle logistics or registration complexities related to Blinkit warehouses.

A Simplified System for Sellers

For many sellers, the new system could simplify compliance burdens.
Currently, vendors using Blinkit’s marketplace model must register each warehouse under GST and FSSAI.
This process adds complexity for food and beverage businesses in particular.
By purchasing inventory outright, Blinkit converts stock transfers into regular sales.
This eliminates the need for individual warehouse declarations and compliance updates.

A founder from a partnered brand said the transition reduces administrative headaches.
They no longer need to manage backend logistics or regulatory registrations with each stock movement.

Financial Impact and Working Capital Planning

During Eternal’s January–March earnings report, CFO Akshant Goyal discussed Blinkit’s working capital needs.
He explained that owning 100% of Blinkit’s inventory in FY25 would require less than ₹1,000 crore.
This amount equals only 15 days of working capital for the quick commerce business.
It also represents 3–4% of Blinkit’s projected gross order value of ₹28,274 crore.
These figures show the move is financially feasible and may even improve efficiency.

Strategic Move Linked to Indian Ownership

In April 2025, Eternal became an Indian-owned and controlled company.
Over 51% of its ownership is now with Indian entities and investors.
This milestone helped the company comply with India’s FDI rules for e-commerce platforms.
As an IOCC, Blinkit can now manage its own inventory without violating foreign investment laws.
This strategic change gives Blinkit more freedom in controlling its operations and margins.

FDI Regulations and Their Implications

India’s FDI policy restricts foreign-funded e-commerce companies from owning inventory.
They are also prohibited from influencing prices or controlling sellers directly.
This rule affects online marketplaces operating under foreign funding structures.
As a result, most platforms avoid directly operating warehouses or owning stock.
Instead, they work with third-party entities or dark store operators to fulfill orders.

By becoming an IOCC, Blinkit sidesteps these limitations.
It now has the flexibility to implement an inventory-led model without regulatory barriers.

Blinkit’s Competitors Are Also Watching Closely

Quick commerce platforms like Zepto and Swiggy Instamart face similar challenges.
Zepto is also taking steps to increase its Indian ownership.
These moves reflect an industry-wide push to adapt to India’s regulatory landscape.
Owning inventory could offer these firms better control over delivery speed and product quality.

The shift may influence how other platforms design their seller and supply chain strategies.
This change could lead to wider adoption of inventory-led models across India’s quick commerce sector.

How This Change Impacts Consumers

Consumers may benefit from the improved system reliability.
With Blinkit owning inventory, restocking becomes faster and more predictable.
This could reduce product unavailability and delivery delays on the app.
Product quality control may also improve under a unified warehouse management system.
Ultimately, customer satisfaction could rise as Blinkit gains more control over operations.

Opportunities and Challenges of the New System

The model offers advantages like better cost control and data-driven inventory planning.
Blinkit can now negotiate bulk pricing with brands and optimize SKUs for each region.
It can streamline promotions, bundle offers, and manage expiry-sensitive items more efficiently.

However, challenges remain.
Blinkit now bears the risk of unsold inventory, spoilage, and storage costs.
It must invest in forecasting tools and stronger warehousing infrastructure.
It also needs deeper vendor relations and strong procurement systems.

The Seller Landscape May Shift

Sellers who adjust to the new structure could benefit from predictable sales and faster payments.
However, smaller vendors may find it harder to operate without a marketplace model.
They may lack the scale or margins to sell inventory directly to Blinkit.
Blinkit may introduce credit options or rolling payment plans to support these vendors.

Key Takeaways From Blinkit’s Strategic Move

• Blinkit shifts to an inventory-led model starting September 1, 2025.

• The change follows its parent company becoming Indian-owned in April.

• Sellers must opt into the new model by July 30 or exit the platform.

• The model simplifies GST and FSSAI compliance for registered vendors.

• Blinkit gains full control over inventory, improving margins and customer service.

• The move aligns with India’s FDI rules for e-commerce platforms.

• Blinkit’s competitors may adopt similar strategies to stay competitive.

• Consumers could benefit from faster deliveries and improved product availability.

Looking Ahead

Blinkit’s inventory-led model marks a turning point in India’s quick commerce industry.
The company is making a calculated bet on control, compliance, and customer experience.
If successful, this strategy could set a new standard for digital retail in India.
More platforms may soon follow Blinkit’s path to optimize growth under Indian regulatory rules.

Blinkit’s next financial report will reveal how this change impacts its profitability.
Analysts will closely track fulfillment speeds, inventory turnover, and vendor satisfaction levels.
Customers, brands, and industry experts will be watching Blinkit’s bold transformation.