Zomato-owned quick commerce platform Blinkit's business turned contribution positive in Q2 FY24 for the first time for the entire quarter, the company said on Friday, adding that Blinkit's gross order value (GOV) will become multiple times larger than Zomato's GOV in overlapping cities in the future.
Zomato CEO Deepinder Goyal said that Blinkit is seeing good product market fit and is growing well in each of the cities that it is present in currently.
"In the last five quarters post our acquisition of Blinkit, we have seen a steady rise in Blinkit's GOV as a percentage of Zomato's GOV in the cities where we have an overlapping presence, " he said while presenting the company's Q2 FY24 earnings report.
Zomato acquired Blinkit in an all-stock deal for Rs 4, 447 crore last year. Blinkit's GOV is now growing at over 80 per cent year-on-year (YoY).
Albinder Dhindsa, Co-founder and CEO at Blinkit, said that average order value (AOV) continued to increase for the second quarter in a row.
"AOVs in this business will continue to swing up and down mainly due to seasonal factors. That said, a part of the recent uptick in AOV was also driven by the improving assortment and GOV mix in favour of high ASP (average selling price) categories such as electronics, toys, books, beauty products, home decor, festive needs, among others, " he informed.
Goyal said that from a potential profit pool perspective, "we think quick commerce is a larger opportunity than food delivery".