Popular grocery delivery service Blinkit is offering a ₹200 discount on Pushpa 2 movie tickets. This limited-time offer is available to customers who spend ₹999 or more on the Blinkit app. The blockbuster sequel has already smashed box office records globally.
A Delhi resident, Mohit Jain, has accused online grocery platform Blinkit of scamming him after he received a 0.5-gram gold coin instead of the 1-gram gold coin he had ordered on Dhanteras. Jain shared his experience on X, highlighting how Blinkit’s customer support failed to address his complaint. The incident sparked outrage on social media, with many users sharing similar experiences with Blinkit and criticizing the company’s customer service.
Zomato and Blinkit, two companies under the same umbrella, engaged in lighthearted banter on social media, celebrating the Indian festival of Raksha Bandhan with a playful take on their relationship. The interaction showcased the companies’ ability to leverage trending events for marketing, highlighting the strong bond between Zomato and its subsidiary, Blinkit. Meanwhile, Blinkit celebrated a successful Raksha Bandhan eve with record sales and orders, offering a glimpse into the growing popularity of its quick delivery services.
A Gurgaon resident’s social media post highlighting the exorbitant price of coriander on Zepto, a quick-commerce platform, has ignited a storm of criticism. Users have expressed shock and disbelief at the ₹131 price tag for 100 grams, comparing it to Blinkit’s significantly lower price and highlighting the convenience premium attached to such platforms. The incident raises questions about the affordability and value proposition of quick-commerce services.
Online food delivery platform Zomato has invested Rs 300 crore in its quick commerce arm, Blinkit, and Rs 100 crore in Zomato Entertainment, its events arm. This investment brings Zomato’s total investment in Blinkit to Rs 2,300 crore since acquiring it in August 2022. Meanwhile, Zomato has said that Blinkit turned adjusted EBITDA positive in March, with the online food delivery platform clocking Rs 194 crore in adjusted EBITDA for the January-March quarter of FY24. The consolidated adjusted EBITDA improved by Rs 369 crore as compared to the same quarter last year. The adjusted revenue was Rs 3,873 crore, a 61 per cent growth (year-on-year) for the quarter, as food gross order delivery (GOV) grew 28 per cent (on-year).
A social media post expressing disappointment over Blinkit’s decision to charge for coriander (dhaniya) has ignited a lively discussion online. The user’s mother reportedly experienced a minor heart attack due to the lack of free dhaniya, prompting her to suggest that it should be bundled with certain vegetable purchases. The post has garnered significant attention, with many supporting the idea and some questioning the request for freebies. Blinkit, which aims to have 1,000 warehouses by the end of the financial year, has reported operational profitability in March.
In a recent note, Goldman Sachs analysts have upgraded the implied value of Blinkit, the quick commerce platform acquired by Zomato in 2022, to an impressive $13 billion. This valuation now exceeds Zomato’s core food delivery business, valued at Rs 98 per share. The upgrade stems from higher gross order value (GOV) estimates for Blinkit, which have exceeded expectations by approximately 50 percent over the past year. Despite being acquired for $568 million in 2022, Blinkit’s implied valuation has grown significantly to $13 billion, representing a six-fold increase year-over-year.
Analysts predict a robust growth trajectory for Blinkit, with a projected 53 percent CAGR in GOV between 2024 and 2027. This growth is expected to contribute to a 32 percent adjusted revenue CAGR for Zomato on a consolidated basis, making it one of the highest growth projections within Goldman Sachs’ food delivery and India internet coverage.
As Zomato continues to enhance profitability, particularly in the quick commerce segment, Goldman Sachs anticipates further potential for its valuation multiples to expand. The brokerage highlights that Zomato’s EBITDA margin is among the highest among global food delivery platforms, a trend expected to continue in the quick commerce business.
Consequently, Goldman Sachs has maintained a ‘buy’ recommendation on Zomato’s stock and increased the target price to Rs 240 from Rs 170. Out of 28 analysts covering Zomato, 24 recommend ‘buy’, while the remaining have a ‘hold’ rating. The brokerage believes that the market is still undervaluing Zomato’s growth and profit potential in the online grocery segment. Zomato’s shares were trading at Rs 185.55, up 2 percent, at 12 pm on April 26.
