Results for: Zomato

Prime Minister Narendra Modi applauded Zomato CEO Deepinder Goyal’s speech, emphasizing the importance of hard work and entrepreneurial spirit. Goyal shared how his father initially doubted his ability to succeed as a startup founder, but the PM stressed that one’s background should not be a hindrance to success. He praised the BJP government for creating an environment where startups can flourish, enabling individuals like Goyal to achieve their goals.

A Pune man claimed to have found a piece of chicken in a plate of paneer biryani he ordered from the online food delivery app Zomato, adding that his “religious sentiments were hurt”. Zomato replied promptly to Pankaj Shukla’s post on X (formerly Twitter), which featured a photo and a video of the biryani. In the post, Shukla, a vegetarian, said he received a full refund for his order but had still decided to write it.

Zomato faced criticism for its Mother’s Day messages, with some users expressing discomfort with the reminders and intrusive nature of the promotions. A user who recently lost her mother found the messages particularly insensitive and called for more sensitivity from companies. While some supported her concerns, others defended Zomato’s actions, arguing that it was simply doing its job.

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.

Zomato is reportedly testing a feature that would allow customers to pay an additional fee for faster food delivery. The company is also increasing its platform fee, which is a fixed charge on every order. These changes are part of Zomato’s efforts to retain customers amid increasing competition.

To streamline order deliveries, Zomato introduces a paid priority delivery service, with customers opting to pay an additional fee for faster delivery times. Additionally, the platform fee is increased by 25%, now at Rs 5 per order, and Zomato’s intercity delivery service, Legend, undergoes revisions.