Goldman Sachs analysts have recently announced that they value Blinkit, the quick commerce startup acquired by Zomato in 2022, at a significant equity valuation of $13 billion. This valuation surpasses that of Zomato’s food delivery business. Originally acquired for $568 million in 2022, Blinkit’s value has soared due to improved performance, according to Goldman Sachs.
The current valuation of Blinkit marks a substantial increase from Goldman Sachs’ earlier estimate of $8 billion, made earlier this month. The analysts attribute this upgrade to higher gross order value (GOV) estimates for Blinkit, which are tracking approximately 50% higher than estimates from a year ago.
Goldman Sachs’ note indicates that Blinkit’s implied valuation in Zomato’s sum of the parts (SOTP) model has surged to around $13 billion, compared to $2 billion in March 2023. The per-share implied value of Blinkit now stands at ₹119, surpassing that of Zomato’s food delivery business, which is valued at ₹98 per share, for the first time.
Additionally, Goldman Sachs expressed optimism about Zomato’s potential for further valuation multiples re-rating. The brokerage highlighted Zomato’s EBITDA margin, which is reportedly the highest among global food delivery platforms. In light of these factors, Goldman Sachs maintains a ‘buy’ recommendation on Zomato stock and has raised the price target on the food delivery aggregator to ₹240 from ₹170 earlier.
These developments underscore the significant growth and valuation of Blinkit within Zomato’s portfolio, positioning it as a key player in the quick commerce space and contributing to Zomato’s overall value proposition.
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