Analysts at Global Brokerage Goldman Sachs Bullish on Blinkit, Shares Crucial Note

The analysts at the global brokerage firm Goldman Sachs have expressed optimism regarding Blinkit, a quick commerce startup owned by Zomato. The analysts emphasized in a note that Blinkit has surpassed its parent company in terms of value, marking a substantial achievement for the fast-growing platform. Zomato, the popular food delivery platform, acquired Blinkit in 2022 for a reported sum of $568 million.

Since then, Blinkit's performance has surged, outstripping that of its parent company's core business. Analysts at Goldman Sachs highlighted that Blinkit's implied valuation now stands at a remarkable $13 billion, indicating a staggering growth rate of over six times on a year-on-year basis. In March, during the 'Startup Mahakumbh' event in Delhi, Goyal said that Blinkit could potentially exceed Zomato in size and scale.

TOI quoted the brokerage in its report pointing out that Blinkit's implied valuation in Zomato's sum of the parts (SOTP) has soared to approximately $13 billion, a substantial increase from $2 billion in March 2023. Notably, the per-share implied value for Blinkit now stands at Rs 119, surpassing that of Zomato's food delivery business, which is valued at Rs 98, for the first time.

The recent bullish note by Goldman Sachs aligns with a prediction made by Zomato CEO Deepinder Goyal. Goyal had suggested last month that Blinkit's quick commerce platform could potentially surpass the parent company's food delivery business in size.

"We believe the quick commerce segment can continue taking share from slotted delivery, and reach (around) 70 percent share of India’s online grocery in 2-3 years, a combination of good balance between pricing and delivery times,” the note said.