Is Blinkit Going To Be More Valuable Than Zomato Online food delivery platform Zomato on Friday announced that it has acquired quick-commerce platform Blinkit for Rs 4,447 crore in an all-stock deal. Zomato holds more than 9 percent stake in Blinkit (formerly Grofers). The Blinkit deal was earlier valued at around $700 million, but the fall in Zomato’s share prices brought it down to $568 million. Zomato CEO Deepinder Goyal said that our existing food business is continuously moving towards profitability.
Zomato has grown at a CAGR (compound annual growth rate) of 86 percent over the last four years to reach adjusted revenues of $710 million, while adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization) margins grew by 153 percent in FY2019. ) to (18 percent) in FY22. Goyal said Zomato’s restaurant delivery subsidiary Hyperpure will acquire the warehousing and support services business of Hands On Trade Pvt Ltd (HOTPL) for Rs 60.7 crore.
Zomato Chief Financial Officer Goyal said that the company is not looking to acquire B2B. He said that our existing investment of Rs 2,228 million in HOTPL is protected through our (liquidation preference). The transaction is expected to close in early August 2022.
Let us tell you that Blinkit All-Stock Deal has a quick-commerce platform, which delivers groceries and other essentials to customers within minutes. Blinkit’s average delivery time in the month of May was 15 minutes. Before this, his business was the distribution of groceries.
Blinkit had a gross order value (GOV) of Rs 4,028 million in the month of May 2022, which is 1/5th of Zomato’s monthly average food delivery in Q4FY22. In August last year, Blinkit (then Grofers) had raised $100 million from Zomato.
Zomato CEO Deepinder Goyal announced on Friday the acquisition of quick-commerce platform Blinkit for Rs 4,447 crore in an all-stock transaction. Zomato, which already held over 9 percent stake in Blinkit (formerly Grofers), has seen the deal’s value decrease from the initially estimated $700 million to $568 million due to the decline in Zomato’s share prices. Goyal stated that Zomato’s food business is steadily progressing towards profitability.
Zomato has experienced a robust compound annual growth rate (CAGR) of 86 percent over the past four years, resulting in adjusted revenues of $710 million. During the same period, adjusted EBITDA margins have expanded significantly, growing by 153 percent from FY2019 to FY22, reaching 18 percent. Additionally, Zomato’s restaurant delivery arm, Hyperpure, will acquire the warehousing and support services business of Hands On Trade Pvt Ltd (HOTPL) for Rs 60.7 crore.
Zomato’s Chief Financial Officer stated that the company has no plans to acquire B2B technology. He emphasized that Zomato’s current investment of Rs 2,228 million in HOTPL is safeguarded through our liquidation preference. The transaction is anticipated to be finalized in early August 2022.
