On Wednesday, the Telangana Food Safety Department raided a warehouse of Zomato-owned Blinkit in the Devar Yamjal area of the state’s Medchal Malkajgiri district.
In a post on X, the Commissioner of Food Safety for Telangana stated that a task force conducted a raid on the warehouse, discovering it to be “disorganized, unhygienic, and dusty.” The post also stated that a notice would be sent, and appropriate action would be taken against the organisation.
The department also reported seizing edible items valued at INR 82,000 from the premises, either for non-compliance with food safety regulations or due to expired licenses.
“The products manufactured by Kamakshi Foods were found to have expired licenses. Consequently, products from VSR, including Suji, Raw peanut butter, Maida, Poha, Besan, and Bajra worth INR 30K, were seized. Suspected infested Whole Farm Ragi flour and toor dal worth INR 52K were also seized, with samples sent to the lab,” the post detailed.
Furthermore, the department discovered products at the warehouse linked to Whole Farm Congruence Trade and Services that did not adhere to labeling regulations under the Food Safety and Standards Act of 2006. Notices concerning this matter will be issued accordingly, stated the department.
The authorities also observed that cosmetic products were stored alongside food items in the warehouse. Furthermore, the task force discovered that food handlers at the premises were working without proper headgear, gloves, and aprons.
The post on X also highlighted the absence of medical fitness certificates for food handlers in possession of the warehouse operators. It further noted the lack of Food Safety Training and Certification (FoSTaC) trainees present at the warehouse.
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Response from Blinkit
Meanwhile, Blinkit stated that it was collaborating with the department to execute corrective measures.
A Blinkit spokesperson emphasized, “We prioritize safety and hygiene standards. We are actively collaborating with our warehouse partner and the food safety department to address the issues highlighted and implement necessary corrective actions.”
For those unfamiliar, quick commerce platforms streamline deliveries through warehouses or dark stores, typically ranging from 2,500 to 3,500 square feet, strategically located near residential areas. Within these facilities, numerous handlers work on the floor, packing items before they are dispatched for delivery.
This isn’t the first instance of Blinkit facing scrutiny. In April, the Central Consumer Protection Authority (CCPA) instructed Blinkit, alongside other quick commerce players, to verify their ’10-minute’ delivery promises.
The company is also contending with a trademark infringement lawsuit filed by a Bengaluru-based company regarding the use of its name. Moreover, last month, the company faced a strike by its delivery executives, advocating for a revised pay structure. This resulted in service interruptions as numerous dark stores ceased operations, particularly in the Delhi NCR and Mumbai regions.
This comes at a time when optimism prevails among most brokerages regarding the performance of the quick commerce platform. Despite operating at a loss, Blinkit has rapidly expanded its operations and even achieved positive adjusted EBITDA in the March 2024 quarter.
Financial Performance of Blinkit
The quick commerce division generated a revenue of INR 769 Cr in the fourth quarter (Q4) of the financial year 2023-24 (FY24), compared to INR 363 Cr in the corresponding quarter of the previous year.
Meanwhile, Blinkit’s adjusted EBITDA loss continued to improve, reaching INR 37 Cr in the quarter under review, compared to INR 203 Cr in Q4 FY23.
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