Eternal shares rally 5% on Blinkit's plans to switch to inventory-led model
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Shares of Eternal (formerly Zomato ) surged 5.4% to hit an intraday high of Rs 277.65 on the BSE on Monday after its quick commerce subsidiary Blinkit announced a strategic shift to an inventory-led business model, aimed at boosting operational efficiency and margins.By the end of today's trading session, the shares of Eternal settled 3.11% higher at Rs 271.50 on the BSE.The Gurugram-based Blinkit will transition to the new model starting September 1, 2025, under which it will directly purchase inventory from sellers and brands, rather than operating as a marketplace that simply stores seller-listed products.By transitioning fully to direct inventory ownership, Blinkit expects to simplify operations for sellers and streamline processes, as brands will no longer need to manage GST and FSSAI compliances for warehousing under the marketplace model.The company notified sellers over the weekend, informing them that the last date to opt into the new system is July 30, after which non-participating sellers will no longer be allowed to list their inventory. From August 31, inventory will officially shift to Blinkit's books.The move follows Eternal's transformation into an Indian-owned and controlled company (IOCC) earlier this year, allowing it to operate a fully inventory-led model in compliance with India's FDI norms. Under Indian regulations, foreign-funded marketplaces are restricted from owning inventory, prompting platforms like Blinkit to operate under hybrid models until now.Eternal's CFO, Akshant Goyal, earlier stated that assuming Blinkit owned 100% of its inventory in FY25, it would deploy less than Rs 1,000 crore in working capital, only about 3–4% of Blinkit's gross order value of Rs 28,274 crore in FY25.This shift is expected to improve Blinkit's control over inventory and operating margins, crucial at a time when quick commerce players face margin pressures amid aggressive expansion.For sellers unwilling to transition, Blinkit said it would return their inventory after deducting reverse logistics charges.Meanwhile, Blinkit's rival platform Zepto has also been working towards increasing domestic ownership to explore similar operational flexibility.Also read: Jane Street complies with Sebi, deposits Rs 4,843 crore in escrow account
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