Blinkit reports 220% jump in ad revenue, advertisers grow by 130% in Q3FY24

Blinkit, the quick-commerce division of Zomato, reported a more than threefold increase in its advertising revenue for the December quarter compared to the corresponding period last year.

During the October-December quarter, Blinkit witnessed a 220% year-on-year surge in ad revenue. However, specific figures regarding the earnings from ads on the platform were not disclosed by the company.

In Q3FY24, its gross order value (GOV) reached Rs 3,542 crore, marking a 103% year-on-year growth from Rs 1,749 crore recorded in Q3FY23. While 90% of Blinkit's GOV originates from the top eight cities, it is exploring opportunities to expand its presence in other regions across India.

The company's overall order value also experienced a 103% growth, with the number of advertisers on its platform reaching 557 in Q3FY24—a 130% increase from the 242 advertisers in Q3FY23.

Contrary to the previous fiscal year, where the top 20 advertisers contributed to 61% of the total ad revenue, they accounted for 40% of Blinkit's ad revenue during the same period in Q3FY24.

Blinkit attributes the improvement in ad monetization to its user-friendly self-serve ad platform and the measurable, high return on investment (ROI) offered to advertisers.

Albinder Dhindsa, CEO of Blinkit, noted that quick-commerce is one of the most transacted categories online, and that the transacting frequency on Blinkit is among the highest in any consumer internet category in India. “Brands are therefore looking to build visibility with a highly engaged and fast-growing customer base with spending power,” he said, in Zomato’s letter to its shareholders.

He also pointed out that linking ad impressions to actual sales helped brands accurately measure their return on investments.

In Q3FY24, Blinkit fulfilled 55.8 million orders, marking a 77% rise from the 31.6 million orders recorded in Q3FY23. Additionally, the average order value (AOV) also increased from Rs 553 to Rs 635 during the same period.

“While most of the GOV growth was order volume-led, part of it was also driven by an increase in average order value, which continued to benefit from a higher mix of high ASP (average selling price) categories such as electronics, festive needs, home décor, among others,” Dhindsa said.

In response to the escalating demand, Blinkit expanded its network by adding 40 new stores on a net basis in Q3FY24, resulting in a total store count of 451. Previously, Blinkit had announced plans to conclude FY24 with a total of 480 stores.

"In the last quarter, we launched stores in two new cities - Goa and Agra...we are selectively adding a couple of stores to test the waters in high potential new cities. So far, all the new cities that we have launched are showing good potential and we will look to subsequently scale these cities as well," Dhindsa said.

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