FMCG (consumer)
Blinkit and Instamart raise dark-store capex to build larger hubs
This 'Insights' piece explores the significant capital expenditure (capex) increase by quick commerce players Blinkit and Instamart for their dark stores. With guidance raised to approximately ₹2.5 crore per unit, these companies are building larger dark stores, often exceeding 5,000 sq ft. These are evolving into mini fulfilment centres, aiming to stock a wider array of Stock Keeping Units (SKUs) and enhance operational throughput. While this investment in retail infrastructure could boost efficiency, it also necessitates higher upfront capital. The story touches upon the competitive landscape of quick commerce in India, including players like Swiggy, and raises questions about the potential impact on quick commerce profitability amidst this surge in warehouse capex. This development is crucial for understanding the evolving e-commerce India and its impact on market dynamics.
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