Coming in hot off the Goldman Sachs press is an interesting twist in the tale of India’s revered food delivery company, Zomato. A recent report suggests that Blinkit, Zomato’s rapid commerce arm, has unexpectedly emerged as the golden goose, surpassing the valuation of its parent company. But what led to this exciting turn of events? Let’s take a look.
1. Blinkit Tops Zomato’s Food Delivery Business in Value
According to Goldman Sachs, a sum-of-the-parts analysis has established Blinkit’s worth far beyond Zomato’s primary business – food delivery. It pinpoints Blinkit’s estimated value at an impressive 119 Indian rupees per share ($1.43), accruing to a staggering total of around $13 billion.
2. Quick Commerce vs. Food Delivery
The surge in Blinkit’s valuation provides a potent marquee case of the quick commerce sector’s potential. It has indeed become a lucrative sector in Asia’s third-largest economy, attracting substantial investor interest. In contrast, food delivery, though still cementing a significant presence, is trailing behind in terms of market evaluation.
3. Magnet for Investors
The quick commerce space’s rapid growth isn’t isolated to India alone. It has been pulling in a solid base of investors worldwide, manifesting its global appeal. Its primary allure lies in its ability to provide customers with speedy service, covering a wide gamut of necessities far beyond just food delivery.
4. Blinkit’s Meteoric Rise
This is a quintessential tale of a wing of a business outgrowing its parent. Blinkit, previously a separate entity known as Grofers, was acquired by Zomato around mid-2021. Since then, its rapid ascent has been quite the spectacle, making it a poster child for successful mergers and acquisitions.
5. A Potential Rebranding?
Given Blinkit’s impressive performance, it might not be far-fetched to assume that Zomato could consider capitalizing on its rapid commerce wing’s commendable market momentum. With this unexpected turn of events, the tables seem to have turned, making it possible for Zomato to rebrand or reposition itself in an unprecedented way.
In conclusion, the quick commerce sector, represented here by Blinkit, is reshaping the way we perceive the value of companies. It’s a vibrant reminder that the tech industry, particularly those engaged in ‘instant’ services, are ceaselessly innovative, adaptable, and ready to deliver on every customer’s whim. Blinkit’s overpowering of Zomato illustrates the reality that a business’s true worth may lie in its underexplored areas, perhaps waiting just around the corner. The challenge then becomes one of discovery – the continuous exploration to unearth potential goldmines inherent in a company’s structure.
Credit: BBC. TechCrunch, Reuters
