Why fast fashion delivery start-up Blip has shut down
What's the story
Blip, a start-up specializing in ultra-fast fashion deliveries with a promise of 30-minute service, has shut down its operations just a year after its launch. The company's co-founder Ansh Agarwal announced the news on LinkedIn. He said that despite their belief in this business model, limited capital made it extremely difficult for them to compete effectively in the market.
Business model
How was its business model different?
Blip was one of the first Indian start-ups to try verticalized quick commerce for fashion. The company operated on a model different from Myntra and new players like Slikk and NewMe. It promised deliveries in under 30 minutes in select areas of Bengaluru, using deep tech integrations and micro-warehousing. However, this unique approach also slowed down their go-to-market strategies due to the time taken to convince stakeholders about these first-in-market implementations.
Market trend
Closure comes amid rising interest in vertical quick commerce
The shutdown comes even as investors are showing more interest in vertical quick commerce models like fashion, home services, as well as baby products. Start-ups such as Slikk and NEWME, along with established players Myntra and Ajio, have been capitalizing on this trend by offering quick delivery services for trendy outfits. Despite the closure of Blip, Agarwal remains optimistic about the potential of verticalization within quick commerce.
Challenges
Challenges in ultra-fast fashion space
Agarwal had previously compared Blip to Zomato for clothes, emphasizing their role in making the right selection and delivering it quickly without holding inventory. Blip's exit could serve as an early indicator that while demand for ultra-fast verticalized delivery is clear, executing such models without significant capital and operational strength remains a major hurdle.