Blinkit will deliver more value to shareholders than Zomato in 10 years: Deepinder Goyal

Zomato CEO Deepinder Goyal

With its quick commerce bet Blinkit hitting a purple patch, Zomato CEO Deepinder Goyal said on August 3 that the business acquired last year will deliver more value to shareholders than the core business in the next 10 years.

"I can proudly say that Blinkit's GOV (gross order value) is very close to Zomato's GOV in some of the large cities where we have an overlapping presence. This is just the start, and I believe that 10 years from now, Blinkit will drive more value for our shareholders than Zomato," Goyal wrote in a letter to shareholders.

Blinkit recorded its highest-ever GOV and transacting customers in the months of June and July, after recovering from the business disruption caused by a delivery workers' strike in its biggest market, Delhi-NCR.

The company estimates that, based on its current volumes, it will see GOV growth of 20 percent in the next quarter.

Blinkit has also turned contribution margin positive, a metric new-age commerce companies use to measure the profitability of a business at a per-order level. Blinkit also said that it expects to be Adjusted EBITDA positive in the next four quarters.

"Getting to sustainable positive Contribution at a business level was the first step, but there's a lot that needs to come together in order to get to Adjusted EBITDA break-even," Blinkit chief Albinder Dhindsa said.

"Doing that in conjunction with the store expansion plan (about 100 net new stores during FY24) is going to be challenging, but the team is very determined to deliver on growth AND profitability over the next few months," he added.

The company said it is confident to get to operational profitability (in Adjusted EBITDA terms) at a cumulative investment much lower than $320 million which was indicated in August 2022, at the time of its acquisition by Zomato.