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In a significant valuation update, Goldman Sachs has placed Blinkit, the quick commerce startup acquired by Zomato in 2022, at a higher value than Zomato’s food delivery business. This valuation shift underscores Blinkit’s impressive performance and potential within the market.
Goldman Sachs now values Blinkit at ₹119 per share, translating to a $13 billion equity valuation. This valuation surpasses Zomato’s food delivery business, which is currently valued at ₹98 per share. The substantial growth in Blinkit’s implied valuation from its acquisition price of $568 million in 2022 to $13 billion highlights the company’s rapid ascent and strong market position.
Analysts at Goldman Sachs attribute Blinkit’s increased valuation to a significant rise in its gross order value (GOV), which is tracking around 50 percent higher than estimates from a year ago. This improved performance has led to an upgrade in Blinkit’s valuation, marking a notable milestone for the company within Zomato’s portfolio.
Goldman Sachs’ earlier estimate of Blinkit’s value was $8 billion, making this latest valuation an upgrade driven by Blinkit’s impressive growth trajectory. The investment firm’s confidence in Blinkit’s potential is reflected in its updated valuation and underscores the value that quick commerce startups can bring to the market.
Additionally, Goldman Sachs has expressed positive sentiments regarding Zomato’s overall valuation and performance. The brokerage firm highlighted Zomato’s EBITDA margin as the highest among global food delivery platforms, signaling further potential for the company’s valuation multiples to re-rate.
Maintaining a ‘buy’ recommendation on Zomato’s stock, Goldman Sachs has raised the price target on the food delivery aggregator to ₹240 from ₹170, reflecting continued optimism about Zomato’s growth prospects and market position.
The valuation update from Goldman Sachs not only showcases Blinkit’s growing importance within Zomato’s ecosystem but also highlights the evolving dynamics and potential of the quick commerce sector in India’s rapidly evolving digital economy.
Sources By Agencies
