Blinkit Targets 5,000 Stores by March 2028

Blinkit is accelerating its expansion beyond major metropolitan markets, targeting around 5,000 stores by March 2028 as it looks to tap demand in smaller cities and strengthen its quick commerce network, as shared in media reports.

According to Eternal’s Q2 FY27 results document, Blinkit expects to cross 3,500 stores by March 2027, compared with 2,751 stores at the end of the second quarter of FY27. The revised expansion plan signals a faster rollout, with smaller cities and stores catering to newer product categories expected to contribute to growth.

Blinkit CEO Albinder Dhindsa said the company’s operating data challenges the assumption that smaller cities have significantly lower average basket values and insufficient customer density to support quick commerce.

According to Dhindsa, new stores in smaller cities reach around 1,000 orders per day within a timeframe comparable to new stores in metropolitan markets, and sometimes faster. Net average order values (NAOVs) in smaller cities are also around 85-90% of metro levels, while customer retention remains comparable.

The orders include products such as premium beverages, branded diapers and gaming consoles, indicating demand for a wider range of products beyond everyday essentials.

The company believes quick commerce can address gaps in local retail availability, particularly where consumers have limited access to organised retail assortments or face longer delivery times through conventional e-commerce platforms. However, Blinkit has acknowledged that not every smaller city can support the model at scale and said it would remain selective about market expansion.

Building supply chain infrastructure will be critical to supporting Blinkit’s growth in smaller markets. Dhindsa said establishing supply chains in these locations is a more complex task and could become a competitive advantage.

In several markets, the company has had to develop first-mile capabilities, sourcing products directly from brand warehouses and transporting them to mother warehouses that supply local stores. These facilities help maintain product availability, manage replenishment and control logistics costs.

Store-level economics will also remain important as the network expands. New outlets typically put pressure on margins during their initial months, although the company expects improvements in mature stores and cities to offset some of this impact.

Eternal said Blinkit’s mature cities were already operating at adjusted EBITDA margins of more than 5%. Cities contributing around 96% of net order value were contribution-positive, while those accounting for around 70% were adjusted EBITDA-positive. These figures indicate progress in profitability across the network, although returns may vary across individual stores and newer markets.

Blinkit is also expanding the range of products available through its stores. In Delhi-NCR, its assortment increased from around 80,000 stock-keeping units (SKUs) in Q4 FY26 to approximately 100,000, according to Dhindsa.

The strategy includes adding more brands, sizes and price points within existing categories, alongside entering new product segments. A broader assortment could encourage repeat purchases and help the platform capture a larger share of household spending.

However, expanding into categories such as large appliances and fragile or high-value goods requires additional capabilities in storage, handling, security and returns management.

Blinkit’s target of 5,000 stores highlights the growing importance of smaller cities in the next phase of India’s quick commerce expansion. The key challenge will be to replicate strong demand while building efficient supply chains and maintaining sustainable store-level profitability.