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Blinkit is now more valuable than Zomato’s core food business: report

New Delhi, April 26 Zomato’s fast food delivery service Blinkit has become more valuable than its core food delivery business, according to a new report by Goldman Sachs.

While Zomato’s food delivery business is valued at Rs 98 per share, Blinkit’s “implied value” is Rs 119 per share, or about $13 billion, according to the investment bank’s report.

In March last year, Goldman Sachs marked Blinkit’s valuation at $2 billion, TechCrunch reports.

The report predicts that Blinkit’s gross order value (GOV) will grow at a compound annual growth rate (CAGR) of 53 percent between 2024 and 2027.

It exceeds the expected CAGR of 38 percent for the entire online grocery market over the same period.

According to the report, the rise in Blinkit’s valuation is due to its robust growth potential in the country’s fast-paced trading market.

In the first quarter (Q3) of last financial year, Blinkit’s GOV growth continued unabated.

Blinkit CEO Albinder Dhindsa said GOV grew by 28 percent (on a quarter-on-quarter basis), largely due to robust demand growth driven by the many festivals and occasions in the quarter.

“While most of the GOV growth was driven by order volume, some of it was also driven by an increase in average order value, which continued to benefit from a higher mix of high ASP (average selling price) categories such as electronics and festive needs and home decoration, among others,” Dhindsa had said.

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