Zomato’s quick commerce service, Blinkit, is now more valuable than Zomato’s food delivery business, as per analysts at Goldman Sachs, as reported by Moneycontrol.
Similarly, in its gross order value, Blinkit will see a compounded annual growth rate (CAGR) of 53 percent between 2024 and 2027, as per Goldman Sachs, as reported by the Economic Times. Blinkit was acquired by Zomato in 2022 for $568 million. It was an all-stock deal for Rs 4,447 crore.
Now, with improved performance, Blinkit’s implied valuation has increased to $13 billion. Further, on a year-on-year basis, the company’s valuation has increased by 6X. As per Goldman Sachs, as reported by Moneycontrol, “We note that Blinkit’s implied valuation in our Zomato’s sum of the parts (SOTP) is (close to) $13 billion now, versus $2 billion in March 2023, with a per-share implied value of Rs 119 higher than food delivery, at Rs 98, for the first time.”
Currently, Blinkit is the largest segment of Zomato, and it accounts for $13 billion of the total market capitalisation. The company has other divisions such as food delivery, dining out, and Hyperpure. “Hyperpure Platform means the online technology platform owned by Zomato where the goods are displayed and the merchant can place orders for the goods.”
Blinkit’s valuation has seen an upgrade by Goldman Sachs from $8 billion, as per an April 4 report, to $13 billion now. One of the reasons for the upgrade has been the higher gross order value of Blinkit.
The brokerage firm has also raised the market price of Zomato from Rs 170 earlier to Rs 240 now. With Blinkit’s consistent good performance, the quick commerce platform is now valued at Rs 119 per share. However, the food delivery platform is valued at Rs. 98 per share.
Read: Simpl Expands Its Integration With Zomato
Talking about the potential of quick commerce platforms, the report says that while these platforms are available in less than thirty cities, they can expand. As reported by Moneycontrol, the report says, “We believe the quick commerce segment can continue taking share from slotted delivery and reach (around) 70 per cent share of India’s online grocery in 2-3 years, a combination of good balance between pricing and delivery times,” the note concluded.”
