ETERNAL LIMITED

Akshant Goyal

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Akshant Goyal

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Akshant Goyal

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Manish Adukia

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Manish Adukia

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Akshant Goyal

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Albinder Singh Dhindsa

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Albinder Singh Dhindsa

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Albinder Singh Dhindsa

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Akshant Goyal

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Do you think potentially with GLP-1 drugs becoming generic in India, there could be a risk to food consumption and especially food delivery of your business?

— Ankur Rudra

Albinder Singh Dhindsa: Also, to add to that, Swapnil, our supply chain investment in tier 2 and tier 3 cities is also more greenfield, and therefore, for the short term, there's usually higher margin pressure on these cities because we are building out a brand new supply chain over there to be able to supply better.

— Akshant Goyal

If the business grows and we need more log-in hours on the platform, scaling that should not be a challenge.

— Akshant Goyal

There has been a slight slowdown in the number of transacting customers and the number of app opens that we're seeing on the app during the year.

— Kunal Swarup

And second, at some level, obviously, there's a bit of a slowdown impact.

— Sachin Salgaonkar

Do you see any risk to the overall growth for the industry out there in the medium term because quick commerce is becoming bigger?

— Sachin Salgaonkar

Sachin, quick commerce has definitely been a headwind to some extent for the food delivery business because some of that consumption has also moved to quick commerce.

— Akshant Goyal

Q

Thank you, and a nice set of numbers overall. Just starting with quick commerce, pleased to see very strong growth there. Is it possible to give us a sense of how same- store sales growth compares with growth from new stores given that we'll probably see store additions potentially begin to slow down a bit more? And, also on the quick commerce side, I think you did mention competition, but if you think competition is able to raise capital, then if your strategy will change in the short term anyway. Thanks. Albinder Singh Dhindsa: Hi, Ankur, this is Albinder. So same-store sales growth is not r

Akshant Goyal

Just to add, we have also mentioned in the letter that a city like Delhi, which from a geographical coverage standpoint is fairly well covered, we've seen a growth of 70% year-on-year in this quarter. So, as Albinder said, same-store growth may not be that relevant in our business, but at least that data point was to showcase that even the relatively more mature markets are growing reasonably well. Thank you. Is it possible to give us some color then in terms of a city like Delhi as an example. How much of the growth is coming from category expansion? What's the scope there over the next few y

Q

Yes, hi. Good evening. Thank you for taking my questions. I have two or three questions, all on quick commerce. The first one is on inventory ownership. The first question is, are you going to move almost all of your inventory to 1P over the next two to three quarters like you mentioned in the letter? And will the margin benefit also be immediate? So, let's say, if you were to move almost all your inventory in three quarters, will the margin benefit also accrue in that two to three quarter period? Or will that take a slightly longer time period? That's my first question.

Akshant Goyal

Yes. Manish, broadly that's the plan and your assessment is right. That's what we expect. In that timeframe, we should be able to move most of our business to inventory ownership and the margin accretion should also happen in that timeframe. Understood. And you talked about some of the things in terms of the differentiation versus peer group, but in terms of like you moving to inventory ownership and, of course, almost all of your peers doing still marketplace, would you say that it's a meaningful competitive advantage? Or it's an advantage but doesn't really move the needle in a meaningful wa

Q

Hi. So, first question, in your ROCE calculation on Blinkit, you've laid out the assumption of about 18 days of working capital. Now this is significantly lower than retail or traditional retailers like DMart. Is this because you do not have to maintain as much shelf inventory? Or is it just that your models allow you to minimize inventory just because you have a just-in-time model and can move much faster? Or does this mean that some of the inventory will still stay off the books?

Albinder Singh Dhindsa

I don't think Aditya it's a like-to-like comparison with something like a DMart because for one of the largest categories, for example, general merchandise, they typically have much higher days of inventory, and that is owing to the way that they also source these items. So, I don't think that you can make that like-for-like assumption. However, because of the way that we replenish and the frequency at which we are actually able to move products in our supply chain, we are structurally better off than most retailers that you would see across categories in the days of cover that we need to have

Q

Hi. Thanks for the opportunity. I have three to four questions. First on Blinkit per se. You're already close to around 17 million MTCs versus 23 million in food delivery. I would like to know what percentage of your quick commerce users are unique in nature, which probably will not be transacting, let's say, on your food delivery side?

Albinder Singh Dhindsa

Swapnil, we have talked about it in the past, but we don't disclose that metric anymore. But the number of unique customers in quick commerce is increasing. It's on an increasing trend because logically, we cater to different customer segments as well. The overlap is not very high - is what I would say. There is a large user base on both sides, which is fairly distinct. Ok. Got it. The second question is with respect to your top cities share in the overall GOV or NOV, whichever we want to look at for the Blinkit business. And any sense as to how has that moved from the previous quarter? Not a

Q

Hi. Good evening, team. A couple of questions. So, first is on this IOCC and 1P. So, let's say, you have about 1,500+ stores. In two to three quarters, when you say that you will move to 1P, is that for all the stores? Or do you need to do bottom-up to figure out which stores you should do 1P and which you should do 3P?

Kunal Swarup

Hi, Vivek, this is Kunal here. So, our move to 1P is not necessarily linked to stores. Stores are just a point of storage. The broader idea is who owns the inventory on the balance sheet. On that, what we're saying is eventually, most of the inventory will be owned by us as the Company. No, sorry. What I meant was, from an inventory standpoint, not from store. I mean when I said store, I meant inventory. So, is there any thought process? Or it's like lock, stock and barrel as you move to 1P because it makes sense everywhere, wherever you are in the country. Yeah, we've mentioned it very clearl

Q

Hi. Thanks for taking my questions. I have three sets of questions. The first is on the leadership. You mentioned two years of rotational style with limited timeline forces leadership to perform with urgency because there's a limited window to create impact. So, my first question is, how do you really measure this impact? Like what are the KPIs under which you measure, and you decide that the stint can be further extended or not?

Akshant Goyal

Gaurav, we don’t want to discuss and disclose that here. That's not the conversation we want to have on this call. Ok. No problem. My second question is on understanding the bit on the Contribution margin in the quick commerce business. Ideally, with your expansion ratio coming down as the number of new stores (as a percentage of existing stores) keep coming down, your Contribution margin should keep moving in the right direction. But this quarter was largely flattish to down. So, just trying to understand what are the various moving parts that go inside, which drives your Contribution margin

Q

Hi, thank you for the opportunity. My question is on quick commerce. Looking at just the AOV, and I know your comments from last quarter around not really looking at driving the basket sizes up. Just in that context, given the AOVs in the smaller cities is 10% lower, I wanted to see whether in the top cities naturally without, let's say, specific interventions from your side, are basket sizes still continuing to rise? Albinder Singh Dhindsa: Over the longer time horizon, yes, they are continuing to rise, but sequentially you might see differences because seasonality plays a very, very big role

Vijit Jain

Ok. Got it. And my second question is on the switch to inventory model. Just looking at marketplace versus inventory model for a second - In terms of how small sellers or D2C brands, those kinds of people get onboarded or featured or promoted on the platform, does anything change at all with this switch? I'm guessing some of them would at least want to feature products on the platform that they want to promote and those kinds of things. So those things, do they change at all under this new architecture or continues to go onwards as it was earlier as well? Albinder Singh Dhindsa: No, Vijit, the

Q

Yeah. Thanks for the opportunity. A couple of questions here. Firstly, on food delivery, if we see, our NOV growth has come down from, say, 27% year-on-year last year same quarter to 13% now. What would you attribute to be the major driver of this? Is it mostly the ordering frequency? And secondly, when we are talking about the number going back to 20%+ next year, where would that incremental growth come from between frequency and AOV?

Kunal Swarup

Hi Rishi, this is Kunal here. So essentially, it comes down to the number of customers transacting on our platform and the average order values. There has been a slight slowdown in the number of transacting customers and the number of app opens that we're seeing on the app during the year. And therefore, year-on-year, some of that growth has been impacted, and we've talked about it over the last couple of quarters. And like we said earlier in this call as well, the expectation is that the transacting customer growth should be higher as customers return to the app. Understood. And the second qu

Q

Hi. Thank you for the opportunity. Three sets of questions. First question is on quick commerce. I do now see a bit of a divergence in business models between how Blinkit is functioning and how your competitors are functioning. What I mean by that is you guys don't have megapods, you don't have the MAX saver equivalent kind of an offering. And I do understand the focus is more to deliver in a 15- minute timeframe versus, let's say, what the MAX savers and equivalents are offering. The question out here is there is a good amount of opportunity to also focus on that base who doesn't necessarily

Albinder Singh Dhindsa

Sachin, we don't see the opportunity there. So that's why we are not doing that. Ok. And any specific reason why you don't see the opportunity out there? I think maybe we are not smart enough so that could be the possible reason. Clearly, you guys are. And next question, District, you guys did mention dining out, movie, sports, concert ticketing as a focus. Any thoughts of also focusing more on travel because there is a good amount of opportunity to cater to the premium user base out there also? Not at this point, Sachin. We remain focused on the existing set of use cases for now and lot of wo