Blinkit’s Value Surpasses Zomato’s Food Delivery Business: Goldman Sachs

Blinkit's value, acquired by Zomato in 2022, now exceeds Zomato's core food delivery business, says Goldman Sachs.

  • Blinkit’s value, acquired by Zomato in 2022, now exceeds Zomato’s core food delivery business, says Goldman Sachs.
  • Goldman Sachs values Blinkit at Rs 119 per share, totaling a $13 billion equity valuation, surpassing Zomato’s food delivery business valued at Rs 98 per share.
  • Blinkit’s valuation growth is attributed to higher gross order value estimates, expected to drive a 53% CAGR in GOV between 2024 and 2027.

Goldman Sachs revealed that Blinkit, acquired by Zomato in 2022, has outstripped the value of Zomato’s core food delivery business. Blinkit’s valuation now stands at Rs 119 per share, reaching a substantial $13 billion equity valuation, eclipsing Zomato’s food delivery business, valued at Rs 98 per share. The surge in Blinkit’s valuation is credited to heightened gross order value estimates, projected to soar by 53% in the coming years.

The quick commerce startup, Blinkit, acquired by Zomato for $568 million, has witnessed remarkable growth since the acquisition, surging to a staggering $13 billion valuation, marking a sixfold increase year-on-year. Goldman Sachs projects a robust compound annual growth rate (CAGR) of 53% in Blinkit’s gross order value from 2024 to 2027, driving a 32% adjusted revenue CAGR for Zomato on a consolidated basis.

Goldman Sachs forecasts further potential for Zomato’s valuation multiples to elevate as it enhances profitability, particularly in the quick commerce segment. With Zomato’s EBITDA margin ranking highest among global food delivery platforms, Blinkit’s swift commerce business is anticipated to mirror this trend, potentially surpassing food delivery vertical margins. The brokerage upholds a ‘buy’ recommendation on Zomato’s stock, projecting significant growth and profit potential in the online grocery segment.