Friday, June 14, 2024

Blinkit surpasses its acquirer Zomato with US$ 13 billion valuation

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Blinkit, a quick commerce platform acquired by Zomato in a deal valued at US$568 million in 2022, has now soared to a remarkable US$13 billion valuation, according to Goldman Sachs. This valuation surpasses Zomato’s core food delivery business led by Deepinder Goyal.

Initially perceived as a liability causing a 20% drop in Zomato’s shares, Blinkit has transformed into its most valuable division. With Zomato’s current market cap hovering around $20 billion, Blinkit now stands as its largest segment, contributing a significant $13 billion to the total market capitalization. Other divisions like Hyperpure and Dining Out make up the remainder.

Analysts highlight that Blinkit’s implied valuation in Zomato’s sum of the parts (SOTP) is now close to US$13 billion, compared to just US$2 billion in March 2023, with a per-share implied value of Rs 119, higher than the food delivery segment at Rs 98, for the first-time ever.

The surge in valuation is attributed to a 50% increase in gross order value, surpassing previous estimates, and an improvement in market dynamics within the quick commerce sector.

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