Blinkit Now More Valuable Than Zomato’s Core Food Business: Report

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New Delhi: Blinkit, a hyper-local delivery company is now valued higher than Zomato's core food delivery business, as per a recent report by Goldman Sachs. Goldman Sachs has valued Blinkit at Rs 119 per share with an equity valuation of 13 billion dollars. It has surpassed the food delivery business of Zomato, which is valued at Rs 98 per share.

Since Zomato acquired Blinkit for 568 million dollars in 2022, the hyper-local delivery company's implied valuation has surged to 13 billion dollars for its improved performance, according to analysts at Goldman Sachs. ()

Goldman Sachs has recently upgraded Blinkit's valuation to 13 billion dollars from their earlier estimate of 8 billion dollars. Goldman Sachs upgraded Blinkit because they anticipate the company's gross order value (GOV) to be about 50 percent higher than it was estimated to be one year ago. ()

“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 per share implied value of ₹119 higher than food delivery, at ₹98, for the first time,” Goldman Sachs stated in its note.

Goldman Sachs kept its 'buy' recommendation on the stock and increased the price target for the food delivery aggregator to Rs 240 which was 170 previously. Out of 28 analysts covering Zomato, 24 recommend 'buy', while the remaining suggest 'hold'. The brokerage believes the market is undervaluing Zomato's growth and profit potential in the online grocery segment.