Blinkit Becomes the Seller! Here's What Nobody Is Talking About...

✅ 𝗪𝗛𝗔𝗧'𝗦 𝗖𝗛𝗔𝗡𝗚𝗜𝗡𝗚?

Old Model (Marketplace / Agency Model):

• Blinkit acted as a facilitator.
• Sellers were the merchant of record.
• Inventory remained on the sellers’ books.
• Blinkit charged a commission on sales.
• Blinkit’s revenue = commission income (not full selling price).
• Complex GST/FSSAI compliance for sellers due to multiple APOBs.

New Model (Inventory-led / Principal Model):

• Blinkit becomes the merchant of record.
• Blinkit purchases inventory from sellers.
• Blinkit owns inventory and books it on BCPL’s balance sheet.
• Blinkit sells to customers directly, taking on regulatory compliance.
• Sellers now just sell B2B to Blinkit, not B2C to customers.

🧾 𝗜𝗠𝗣𝗔𝗖𝗧 𝗢𝗡 𝗔𝗖𝗖𝗢𝗨𝗡𝗧𝗜𝗡𝗚

🔸 For Blinkit (BCPL):

1. Inventory Accounting: Blinkit will now record purchases as inventory on its balance sheet (as per Ind AS 2). COGS (Cost of Goods Sold) will be recognized on sale to end customers.
2. Revenue Recognition: Full sale value (invoice to customer) will now be recognized as gross revenue (as per Ind AS 115 – Revenue from Contracts with Customers). This is a shift from net commission model.
3. Increased Working Capital Requirements: Buying and holding inventory will tie up cash in working capital. Need for better demand forecasting, inventory turnover tracking.
4. GST Treatment: Blinkit will now pay input GST on purchases and collect output GST on customer sales. Increased responsibility for timely ITC reconciliation and compliance.
5. FSSAI and Licensing: Blinkit assumes responsibility for food safety and regulatory licenses, adding to compliance overhead.

🔹 For Sellers:

1. Revenue Recognition: Sellers will now book revenue at the point of sale to Blinkit, not to the end customer. This becomes a B2B transaction, not B2C.
2. Simplified GST Compliance: No need for multiple APOBs across states. GST will be charged on a single consolidated sale to Blinkit (likely ex-factory or warehouse).
3. FSSAI Relief: No need to hold multiple FSSAI licenses for every dark store location. Great relief for small/mid brands.
4. Cash Flow Impact: May see faster realization of payments (B2B model), but pricing power may reduce as Blinkit might negotiate margins upfront.

⚖️ 𝗜𝗠𝗣𝗟𝗜𝗘𝗗 𝗧𝗔𝗫 𝗧𝗥𝗘𝗔𝗧𝗠𝗘𝗡𝗧

• Blinkit: Full output GST liability on customer invoice.
• Sellers: Output GST on sale to Blinkit only. No need for B2C tax collection.
• State-wise GST Compliance: Now centralized at Blinkit; reduced burden on sellers.
• TDS/TCS implications may shift based on transaction flow (needs vendor-specific consideration).

🧠 𝗦𝗧𝗥𝗔𝗧𝗘𝗚𝗜𝗖 𝗜𝗠𝗣𝗟𝗜𝗖𝗔𝗧𝗜𝗢𝗡

This is a shift from being a tech-enabled marketplace to a retail business, closer to how DMart or Amazon Retail functions. It offers:

• More control on product quality, pricing, fulfillment.
• HIGHER REVENUE and margin visibility for Blinkit.
• But also higher risk (inventory obsolescence, shrinkage, working capital strain).