Blinkit surpasses Zomato's valuation: Goldman Sachs update

Goldman Sachs, a global brokerage firm, recently revised the valuation of Blinkit, a quick commerce startup acquired by Zomato in 2022. Here's a simplified overview:

Goldman Sachs' valuation update

Goldman Sachs now values Blinkit at $13 billion, exceeding the valuation of Zomato's primary food delivery business. This increase from the previous estimate of $8 billion is attributed to higher gross order value projections for Blinkit.

The surge in Blinkit's valuation marks a significant growth trajectory, with a more than six-fold increase on a year-on-year basis. Goldman Sachs forecasts a 53% compound annual growth rate (CAGR) in Blinkit's gross order value from 2024 to 2027.

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Zomato's overall performance

Zomato's overall adjusted revenue CAGR is expected to grow by 32%, driven by Blinkit's robust performance. Among food delivery and internet companies in India, Zomato stands out with the highest projected revenue CAGR.

Goldman Sachs advises investors to 'buy' Zomato's stock, emphasizing its potential for further valuation growth. The brokerage firm increased Zomato's price target to Rs 240 from Rs 170, reflecting confidence in its future performance.

The upward revision in Blinkit's valuation underscores its growing significance within Zomato's business portfolio. With optimistic growth forecasts and investment recommendations, Zomato's strategic acquisition of Blinkit appears poised to drive value and profitability in the evolving quick commerce sector.

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