Faster Than Fast: Blinkit Sprints Ahead While Instamart Plays Catch-Up

Image Source: Inc42

India’s quick commerce sector is witnessing a high-speed rivalry that’s becoming increasingly lopsided. Blinkit, Zomato’s grocery delivery arm, has widened its lead over Swiggy’s Instamart, not just in revenue but also in operational efficiency and profitability. Despite Instamart’s aggressive expansion and tech upgrades, the financials reveal a growing gap that’s proving difficult to bridge. Here’s a comprehensive look at the latest developments in this fast-paced grocery war.

Revenue and profitability snapshot

1. Blinkit’s adjusted revenue in Q1 FY26 was nearly three times higher than Instamart’s, despite both operating in similar urban markets
2. Instamart posted an adjusted EBITDA loss of INR 896 crore, more than five times Blinkit’s loss for the same period
3. Blinkit’s average order value reached INR 669, significantly higher than Instamart’s, indicating stronger customer spend per transaction
4. Blinkit has been contribution-positive since Q2 FY24, while Instamart’s contribution margin remains negative at minus 1.9 percent

Operational scale and growth strategy

1. Blinkit reported a gross order value of INR 6,132 crore in Q2 FY25, with 122 percent year-on-year growth
2. Instamart’s gross order value rose to INR 3,382 crore, marking a 75.5 percent year-on-year increase but still trailing Blinkit’s scale
3. Swiggy plans to double Instamart’s store count by March 2026 and increase store sizes by 30 to 35 percent
4. Blinkit’s unit economics remain stronger, with better order density and optimized dark store operations

Tech upgrades and customer experience

1. Swiggy recently rolled out a major UI-UX overhaul for its app, aiming to improve customer engagement and retention
2. Despite the facelift, Instamart’s financials continue to reflect a burn-to-grow strategy, with rising marketing and delivery costs
3. Blinkit’s platform has focused on streamlining logistics and enhancing product availability, contributing to higher repeat usage
4. Analysts note that Blinkit’s tech stack is more mature, enabling better inventory management and faster fulfillment

Market sentiment and investor outlook

1. Swiggy’s overall operating revenue jumped 54 percent year-on-year to INR 4,961 crore, but its net loss surged 96 percent to INR 1,197 crore
2. Investors are cautiously optimistic about Instamart’s long-term potential but remain concerned about its mounting losses
3. Blinkit’s path to breakeven appears more immediate, with Zomato projecting profitability in the near term
4. Swiggy CEO Sriharsha Majety expects Instamart to reach contribution break-even by Q3 FY26 and adjusted EBITDA break-even by Q2 FY27

Competitive landscape and future trajectory

1. The quick commerce race is intensifying, with players like Zepto also gaining ground in urban markets
2. Blinkit’s early pivot to 10-minute delivery and aggressive city-level penetration gave it a first-mover advantage
3. Instamart is focusing on expanding SKU count and improving customer acquisition, but profitability remains elusive
4. Analysts suggest that while both platforms are scaling, Blinkit’s disciplined growth and operational efficiency give it a strategic edge

Looking ahead

The Blinkit vs Instamart rivalry is more than a numbers game—it’s a battle of business models, execution, and consumer loyalty. As Blinkit continues to consolidate its lead, Instamart faces the challenge of balancing expansion with sustainable economics. With quick commerce becoming a staple in urban India, the next few quarters will be critical in determining who truly owns the fast lane.

Sources: Inc42, Business Standard, Economic Times, QOSHE, JM Financial