Blinkit, the quick-commerce arm of food delivery giant Zomato, has been valued higher than its parent company’s core business, according to a recent analysis by Goldman Sachs.
The investment banking firm’s report reveals that Blinkit’s contribution to Zomato’s market capitalization now exceeds that of its food delivery service. The quick-commerce platform, which Zomato acquired, is now valued at Rs 119 per share, overshadowing the food delivery business’s valuation of Rs 98 per share. This assessment pegs Blinkit’s contribution to Zomato’s market value at a staggering $13 billion, a significant leap from its $2 billion valuation in March 2023.
Zomato’s market cap, which hovers around $20 billion, has seen a substantial boost from Blinkit’s performance. The report attributes this growth to Blinkit’s higher gross order value projections and an improving margin profile. Furthermore, Goldman Sachs projects that by fiscal 2029, Blinkit’s gross order value and EBITDA (earnings before interest, taxes, depreciation, and amortisation) will surpass those of the food delivery segment.
This valuation surge is a testament to the burgeoning potential of the quick-commerce sector and its role in Zomato’s evolving business model. As consumer behavior shifts towards instant gratification and speedy delivery services, Blinkit’s success story may just be the beginning of a new era in e-commerce.
