Latest news with #AkshantGoyal
Economic Times
6 days ago
- Business
- Economic Times
Eternal shares rally 5% on Blinkit's plans to switch to inventory-led model
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. ADVERTISEMENT 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 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 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. ADVERTISEMENT 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 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. ADVERTISEMENT For sellers unwilling to transition, Blinkit said it would return their inventory after deducting reverse logistics Blinkit's rival platform Zepto has also been working towards increasing domestic ownership to explore similar operational flexibility. ADVERTISEMENT Also read: Jane Street complies with Sebi, deposits Rs 4,843 crore in escrow account (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
6 days ago
- Business
- Time of India
Eternal shares rally 5% on Blinkit's plans to switch to inventory-led model
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel 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 the end of today's trading session, the shares of Eternal settled 3.11% higher at Rs 271.50 on 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 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 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 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 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 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 sellers unwilling to transition, Blinkit said it would return their inventory after deducting reverse logistics Blinkit's rival platform Zepto has also been working towards increasing domestic ownership to explore similar operational read: Jane Street complies with Sebi, deposits Rs 4,843 crore in escrow account
Economic Times
13-07-2025
- Business
- Economic Times
Blinkit plans transition to inventory led model from September 1; pings sellers to switch
Blinkit is transitioning to an inventory-led model as planned after its parent Eternal became an Indian-owned and controlled company (IOCC) in April. The Gurugram-based quick commerce platform has asked its sellers to switch to a new system where the company will now buy the inventory from them, instead of just storing it in its warehouses for an email to sellers on Saturday, Blinkit said it will shift to a new model starting September 1. From that date, the platform will directly buy inventory from sellers and brands, instead of having them list products on the marketplace. Currently, Blinkit runs two models. In the marketplace model, sellers list their products and pay Blinkit to store them in its warehouses. In the second model, typically offered to larger and more well-renowned brands with high frequency purchases, select sellers buy products in bulk and sell them through the platform. With this change, Blinkit will now take over inventory buying itself and list the products directly. During the company's January-March quarter earnings, Eternal's chief financial officer Akshant Goyal had said that assuming Blinkit owned 100% of inventory in fiscal 2025, it would have ended up deploying less than Rs 1,000 crore in working capital. This accounts for 15 days of working capital, and about 3-4% of Blinkit's gross order value of Rs 28,274 crore in FY25. 'Last date to opt into the new system (is July 30). No new listings or inventory will be allowed after this date for non-accepted sellers,' Blinkit wrote in its email to the sellers. ET has seen a copy of this announcement.'(From August 31) Your inventory moves from your books to BCPL (Blinkit),' it adds. A founder at one of the brands that ET spoke with said that the change is expected to make processes less complex. 'Right now, whoever operates on the marketplace model has to add the Blinkit warehouses on their goods and services tax (GST) and FSSAI registrations (for food and beverage brands)...once Blinkit starts taking inventory through purchase orders, that hassle will go away since it will be treated like a sale and not a stock transfer,' he the sellers not willing to transition to the new model, Blinkit said in its email that it will return the inventory after deducting reverse logistics development was first reported by Eternal had first announced its plans to become an IOCC in April this year, after 51% of its shareholding became locally owned, analysts had said that the move will help the company have better control over inventory and margins particularly at a time when quick commerce companies are witnessing piling up of losses. Blinkit's rival, Zepto, has also been working to raise its domestic shareholding. Under India's foreign direct investment (FDI) rules, foreign-funded online marketplaces are not allowed to own inventory or control sellers on their platforms. Due to these restrictions, quick commerce platforms typically do not directly own the dark stores – micro-warehouses used for 10-minute deliveries – which are instead operated by separate entities.
Time of India
13-07-2025
- Business
- Time of India
Blinkit plans transition to inventory led model from September 1; pings sellers to switch
Synopsis During the company's January-March quarter earnings, Eternal's chief financial officer Akshant Goyal had said that assuming Blinkit owned 100% of inventory in fiscal 2025, it would have ended up deploying less than Rs 1,000 crore in working capital. This accounts for 15 days of working capital, and about 3-4% of Blinkit's gross order value of Rs 28,274 crore in FY25.
India.com
15-06-2025
- Business
- India.com
Masterstroke by Amazon as company officially enters quick commerce race with…, Blinkit, Zepto, and Swiggy Instamart plan to…
New Delhi: In a major development, e-commerce giant Amazon has launched its Amazon Now service in three pin codes of Bengaluru. Amazon Now, which is the company's official entry into the ultra-fast delivery segment, will now compete with rivals Blinkit, Zepto, and Swiggy Instamart which already dominate the market. According to a Moneycontrol report, the launch follows a pilot that began in December 2024 and indicates the company's intention to regain market share, as Indian consumers increasingly move from traditional 1–2 day deliveries to rapid 10–30 minute deliveries for daily essentials and groceries. The American e-commerce giant is likely to expand the service to other places in Bengaluru in coming weeks before scaling it to other cities. It is important to note that Amazon NOW's entry comes at a time when quick commerce platforms are not only witnessing quick adoption but are also starting to capture the share of legacy e-commerce players like Flipkart and Amazon itself. According to a recent report by Flipkart and Bain & Company, over two-thirds of online grocery orders and about 10 percent of overall e-retail spending in 2024 occurred on quick commerce platforms. To recall, Eternal (formerly Zomato) founder Deepinder Goyal earlier had said that the quick commerce firms were burning over Rs 5,000 crore each quarter—with Zepto alone accounting for more than half of that. Industry leaders have already been bracing for a more competitive phase. 'Our view is that competition is going to intensify further from here in the near term…We will aggressively look to grow our market share, especially in the face of heightened competition, and will not let any short-term profitability goals come in the way of that,' Eternal CFO Akshant Goyal said in a letter to shareholders following its Q4FY25 results.
