How can you become a Blinkit Franchise? – Cost & Profit

Over the last few years, the general store concept has evolved into full-fledged supermarkets or convenience stores. Post-pandemic, we have all witnessed immense growth in the industry, with several entrepreneurs stepping forward and taking this concept to the next level.

This model not only provides a better store experience for customers and visitors but also helps achieve impressive sales figures. and the entry of brands like Blinkit has certainly revolutionized the e-commerce industry, where one can expect their home essentials deliveries in a few minutes.

We are all familiar with Big Bazaar and its success stories, which now operate under Reliance Retail. Now, it operates under the brand names Reliance Smart Bazaar and Reliance Smart Point.

Considering the immense growth potential of the e-commerce industry and the booming franchise concept in India, owning a Blinkit franchise may prove your investment worth.

If you have been considering a convenience or retail store franchise or might have heard from some of your colleagues regarding the franchise opportunities with Blinkit, then you have certainly landed at the right place.

In this comprehensive article, you’ll learn about the Blinkit Franchise, including its initial capital requirement, profit margin, growth prospects, and a legitimate process to become their partner.

So, stay tuned and read the complete article if you have been seriously looking out for a lucrative business opportunity.

• Company: Blinkit
• Founded: 2013
• HQ: Gurgaon, Haryana, India
• Industry: Online grocery and delivery
• Locations: over 30+ cities
• Model: Franchise
• Area served: Nationwide
• Franchise Fee: ~₹3 lakh to ₹5 lakh
• Profit Margin: ~ 5-10%
• Area Required: Min. 2000 sq ft
• Total Initial Investment:  ₹25 lakh to ₹35 lakh

Overview of Blinkit Franchise

Founded in 2013 by two aspiring entrepreneurs, Albinder Dhindsa and Saurabh Kumar, as Grofers, Blinkit is one of India’s leading and rapidly growing instant delivery service platforms, which predominantly provides instant deliveries of groceries and home essentials to customers ordering online.

Initially started as a pilot project in the Delhi NCR region, and finding it a lucrative and futuristic opportunity, Blinkit, then Grofers, moved to other states and claimed to deliver over 1.25 lakh orders every day in November 2021.

Soon they introduced the concept of Dark Stores, which later strengthened its supply chain and instant delivery services.

Currently, the chain operates in more than 30 cities in India, including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi, Gurgaon, Pune, and much more.

Blinkit is indeed a one-stop solution provider for various business opportunities. Whether you want to sell your products on Blinkit to boost your sales, open one of their flagship stores and venture into the retail franchise market, or simply become one of their delivery partners and earn an approximate monthly income of ₹50,000, they offer a range of options to suit your needs.

Let’s jump right into their journey and know who actually owns Blinkit.

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The Journey of Blinkit

It all began in 2013 when two techies, employed at Cambridge Systematic, dreamt of entering the Indian e-commerce space and providing instant deliveries of groceries and home essentials to customers ordering through their app.

During that period, this concept was relatively new, and there were very few brands offering similar services. Starting as a pilot project in the Delhi NCR region, Blinkit began serving over 1.25 lakh orders every day, expanding its services to more than 30 Tier 1 and Tier 2 cities in India.

In the meantime, they secured funding from pioneering investors, including Softbank, Tiger Global, and Sequoia Capital. In December 2021, they rebranded themselves as Blinkit, and in 2022, Blinkit was acquired by Zomato for US$568 million in an all-stock deal.

Key facts about Blinkit

How much does a Blinkit franchise cost?

Blinkit, as an instant delivery service, introduced its partner store and warehouse model in several states. Given its tremendous success and higher order value, they chose to adopt the franchise model for business expansion.

To become an approved Blinkit franchise partner, one should have an initial investment capital ranging from approximately ₹25 lakh to ₹35 lakh, with the majority of the investment allocated to inventory stocking.

Additionally, the interested partner should also have a lease or rented commercial space of 2000-4000 square feet on ground floor with plenty for parking space.

The initial investment covers expenses such as the franchise fee, security fee, store decor, interior design, signage, and leasehold improvements.

How much is Blinkit franchise fee?

The franchise fee for Blinkit is ₹5 lakh. Additionally, the interested candidates will have to pay a refundable security deposit fee of ₹3-5 lakh.

While the initial cost vary depending on the property size, the franchise prospects should at least have bank guarantee of ₹30 lakh to ₹35 lakh.

Blinkit franchise royalty fee and other details

Ideally, Blinkit shouldn’t be charging any royalty fee for its franchise. However, according to reliable sources, it’s worth mentioning that as a Blinkit Store franchisee, you’ll be responsible for paying a royalty fee of 3%, which is calculated based on the monthly gross sales.

Our Thought: While there could be numerous orders that you’ll receive as a Blinkit partner, but imposing a 3% royalty fee in a highly price-sensitive market can have a significant impact on the partner’s final margin.

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How much is Blinkit franchise profit margin?

Since its establishment, Blinkit has encountered a number of issues related to providing instant delivery and the availability of order items from authorized partners (local merchants).

With a growing sales volume and improper supply chain, Blinkit realized that catering to such growing demand couldn’t be fulfilled solely through local merchants and full-dependency on local supplier may hamper their brand image.

This issue made them to change their business model from delivery-based to inventory-based e-commerce platform, thus they launched their dark stores.

Let’s understand about its profitability from their latest financial report – FY22:

For fiscal year 2022, Blinkit, which was acquired by Zomato, reported a revenue of ₹2,324 crore, marking a 4% drop from the previous fiscal year FY21. However, along with its declining revenue, its operational expenses were nearly twice its current revenue, totaling ₹4,072 crore.

To sum up in a single statement, Blinkit burned nearly two rupees to generate one rupee in revenue, and it is no surprise that the business couldn’t service due to weak economic condition and had to sell its business to Zomato.

Despite the chain’s claim to provide a ROI of nearly 30%, the recent sale of debt-laden Blinkit to Zomato, another debt-laden brand, coupled with fierce competitive market, and the entry of Reliance Retail, indicates that there is indeed a lot of work is required for Blinkit’s future success.

However, it’s worth mentioning, based on feedback from existing owners, that during the transition to Zomato ownership, they didn’t encounter any issues.

In fact, some of them have experienced substantial growth, expanding from operating a single store to multiple Dark Stores and increasing their daily orders from 100 to over 4000 in Tier 1 cities.

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Why consider owning a Blinkit Franchise?

1. Growing e-commerce industry:
   • Blinkit has certainly gained renown for disrupting the e-commerce industry with its 10-15 minute grocery delivery service. Given the rising trend of customers preferring to purchase groceries online, this is expected to further fuel growth for its business partners.
2. Hassle-free and quick business setup process:
   • Once you are selected as an approved Blinkit partner and complete the necessary requirements, the franchise will setup a store for you within a week, and you’ll be ready to cater to demand of customers in your area.
3. Financial support:
   • For the aspiring candidates, the chain also provide a financial support of at least ₹15 lakh to ₹25 lakh, allowing them to venture into the industry with the help of renowned brand.
4. Continuous order:
   • As a franchise, you are certain to receive higher order quantity compared to local retailers, giving you an edge over the competitors and generate an impressive wealth.
5. Proper supply chain:
   • The franchise ensure the proper availability of stock at every Dark Stores through their personalized software, making partners to understand the demand in their locality.
     • It will eventually allow the partner to order the most ordered item in advance and thus helping in meeting the order in time.

What are the requirements to start a Blinkit Franchise?

1. Interested candidates should have the required funding to start a Blinkit Store, which is ₹25 lakhs to ₹35 lakhs, along with a bank guarantee of ₹30 lakh to ₹35 lakh
2. Additionally, the selected partner should secure a retail store space of at least 2000-4000 square feet in high-traffic area with a parking space for ~15-20 bikes and easy access to park a small truck/ canter.
3. The partner are also expected to hire at least 4-5 staff (with prior experience in retail and customer handling)
4. Interested franchisees should have passion to work in the Retail industry and should possess the leadership and financial skills to operate a Blinkit Dark Store.

What is Blinkit Delivery Franchise?

If you have been seriously looking out for delivery franchise that solely deals in grocery and home essentials, then you may consider partnering as a Blinkit Delivery partner.

While one can certainly generate impressive wealth as a Blinkit partner, but for those who envision entering the e-commerce industry with an affordable investment, it can eventually help them earn at least ₹20,000 to ₹50,000 per month.

Like other delivery personnel, you’ll need to pick up grocery items from preferred partner’s store and deliver it to the customer’s address in the given time frame.

One can also choose to work for either 4,8, or 10 hours. Additionally, you’ll receive a joining bonus, once you achieve the certain number of deliveries in a specified time frame.

Approved partners can also avail the referral bonus by referring your friends to become their delivery partners.

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How much is Blinkit Delivery Franchise Cost?

To become an approved Blinkit Delivery partner, one would need to have an initial capital of ₹2 lakh, which will include the costs, such as deposit fee, signage, and other necessary tools.

What are the requirements for Blinkit Delivery Franchise?

1. The candidates should have their own two-wheeler with proper insurance and registration.
2. Should be at least of 18 years or more.
3. Own an Android phone with an active internet connection
4. Have a valid driving license, registration certificate (RC), insurance certificate and PAN (Permanent Account Number) card
5. An address proof and active bank account

How much is the Blinkit Delivery Franchise Profit Margin?

Like other delivery and courier franchises, Blinkit also follow the ‘per packet model’. Usually, as a partner, you’ll cater to the grocery delivery within the range of 5-10 km. Given the rise in online shopping, growing Blinkit territory, and renowned brand name, one can anticipate to earn at least ₹20,000 to ₹50000 per month.

Documents required to become an approved Blinkit Store Franchise Partner

1. Personal document, including Aadhar Card, Pan Card, and Voter ID.
2. Rent/Lease agreement for commercial use purpose
3. GST License
4. NOC from local authority
5. IT equipment, such as computer, printer, and other stationary items
6. Bank Account details
7. Electricity bill

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How to Get Blinkit Franchise?

To become a Blinkit partner certainly requires a substantial capital and a store size of nearly 2000 square feet. Though the chain may provide the necessary training support, it will be absolutely better to have a prior experience in the retail industry.

One can avail of its franchise by following the below steps:

1. Visit the Blinkit Partner’s official website and navigate to the partner page. This model is also known as Blinkit express
   • You need to select the mini-store format and proceed with filling in the necessary details, such as name, email id, current occupation, phone number, city, state, property type, carpet area, and the necessary store photos.

The Editor’s Thought

Undoubtedly, Blinkit is one of the leading e-commerce platform that offers quick grocery and home essentials delivery to customer ordering online. Earlier the chain used to operate as a delivery-based chain, which later turned into an inventory based model.

The initial investment cost for Blinkit is nearly ₹25 lakh to ₹35 lakh, which includes a franchise fee of ₹5 lakh for a store size of 2000 – 2500 square feet.

While the chain provides the necessary financial support of ₹15 lakh to ₹25 lakh, but also levy a royalty fee of 3-5% to its franchise partner. Additionally, the chain also offers its delivery franchise, where interested candidates can expect an income of ₹20,000, potentially going beyond ₹50,000.

In 2022, the business was acquired by Zomato and its profit number are still in RED. For the most recent fiscal year, the chain net margin were also in RED and considering the weak economy condition and highly competitive market, the chances for them to generate the positive number are unlikely in near future.

Good Luck!! Happy Franchising!!

Want to explore more? Then check out below franchising opportunities.

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