I remember as a kid, me and 3x mates would crowd around a single keyboard and
have a game of what we called "BLOBS".

At the time, we didn't know but it was a BomberMan clone.

Think we were playing it from Windows 95 or DOS...

So, pretty much the same as Bomberman but was 4x player and you played as colorful blobs I think.

It was quite a while ago, but I remember we called it BLOBS.

Anyone recall this game?

Hmm... I've played quite a few Bomberman clones (and wept quite a few tears as a result - okay, metaphorically), but I don't remember one which featured blob player characters. I did a Google search, though, and turned up this DOS game that fits your description:

DStroy

Check the screenshots and see if maybe that's your game.

OMG!
That's it!

Amazing. No wonder I couldn't find it.
All my brothers and childhood friends all thought it was called "BLOBS" as well.

You sir are Amazing!

What did you google to find that?

No problem.

I just did a Google Image search for "dos bomberman blob" and sifted through the images. Eventually I happened upon this website, but the screenshot was too unclear and I wasn't sure if it even had blobs in it until I Googled the name and found a site with more screenshots.