Goldman Sachs Says Blinkit Is More Valuable Than Zomato’s Food Delivery Business

The meal delivery business of Zomato is no longer worth as much as the implied value of Blinkit, the problematic rapid commerce startup that Zomato purchased in a fire sale in 2022, according to a note released on April 25 by Goldman Sachs analysts.

Everything is looking bright for Blinkit; it went from being an albatross around Zomato’s neck to becoming its largest division. Zomato’s shares fell 20 percent in 2022 after the company revealed its intention to buy Blinkit (formerly Grofers), as investors perceived the move as a rescue. All the same, the corporation remained upbeat and seems to have fulfilled its commitments.

Goldman Sachs analysts state that although Blinkit was purchased by Zomato for $568 million in 2022, its estimated valuation has subsequently increased to an astounding $13 billion due to greater performance. Furthermore, the valuation has increased by more than 6X year over year (YoY).

“We have observed that Blinkit’s implied valuation in our Zomato sum of the parts (SOTP) is approximately $13 billion at present, as opposed to $2 billion in March 2023. Additionally, the note notes that the implied value per share is Rs 119 higher than food delivery, at Rs 98, for the first time.”

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According to a story on April 4, Goldman Sachs’ initial estimate of $8 billion was downgraded to $13 billion for the fast e-commerce delivery player. Goldman Sachs stated that the upgrades were a result of increased gross order value (GOV) forecasts for Blinkit, which are projected to be roughly 50% higher than those from a year ago.

Goldman Sachs predicts that between the fiscal years 2024 and 2027, the fast delivery company’s GOV will likely rise at a compound annual growth rate (CAGR) of 53%. According to the statement, this will also propel Zomato’s adjusted revenue CAGR to 32% on a consolidated basis.

JioCinema Set to Unveil New Subscription Plan on April 25, Potential Introduction of Charges for IPL

One of the most widely used video streaming services, JioCinema, is getting ready to introduce a new subscription option for customers. The business uncovered the new membership in a tweet alongside a mystery video that proposed it would furnish purchasers with a ad free encounter. Will the site begin charging users for the Indian Premier League (IPL) with the debut of this plan? Here’s what we currently know.

A brief video that JioCinema posted on X (formerly Twitter) demonstrates how annoyed viewers are with the constant commercial breaks between videos. Yes, this is accurate. As a result, it is getting ready to provide a brand-new, ad-free membership on April 25. A family plan was also alluded to in one of the adverts.

JioCinema’s Potential Shift: Charging for IPL, Ad-Free Experience Rumored

JioCinema may start charging for IPL viewing because the league matches feature a lot of commercials and the firm is preparing to introduce an ad-free option. People can currently watch the Indian Premier League for free on this platform, but they will also see advertisements. However, as the idea seeks to provide an ad-free subscription, this might alter with the upcoming subscription. As a result, it may be necessary to begin paying for the IPL as well.

Nothing has been formally confirmed as of yet, but in the days to come, we will know for sure. According to rumors, customers may be able to download and view 4K material with the new JioCinema plan.

Also Read: RBI Bars Kotak Mahindra Bank: New Credit Cards, Customers via Online Banking and Mobile Banking Suspended

JioCinema offers two plans at the moment. A yearly subscription costs Rs 999, while a monthly bundle is Rs 99. Even if you are a premium user, these are not completely ad-free even after you have paid for them.

RBI Bars Kotak Mahindra Bank: New Credit Cards, Customers via Online Banking and Mobile Banking Suspended

The Reserve Bank of India (RBI) has mandated that Kotak Mahindra Bank cease the process of accepting new clients via its mobile and internet banking platforms, as well as the issuance of new credit cards. According to the RBI’s directive, the bank is still able to offer services to its current clientele, which includes those who use its credit cards. The Reserve Bank of India (RBI) stated, “These actions are necessary due to serious concerns that emerged from the Reserve Bank’s IT examination of the bank for the years 2022 and 2023 and the bank’s ongoing inability to adequately and promptly address these concerns.”

What does this mean for Kotak Mahindra Bank customers?

Kotak Mahindra Bank was instructed by the RBI to cease issuing new credit cards and enrolling new clients through mobile banking.

Why has the RBI barred Kotak Mahindra Bank?

The RBI gave Kotak Mahindra Bank instructions to cease issuing new credit cards and to stop using mobile banking to onboard new clients.

Why has the RBI barred Kotak Mahindra Bank?

According to the RBI, the bank had major flaws and non-compliances in the areas of vendor risk management, business continuity and disaster recovery drills, patch and change management, user access management, data security, and data leak prevention strategy. According to the central bank, the bank was found to have inadequate information security governance and IT risk management for two years in a row.

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“In the absence of a robust IT infrastructure and IT risk management framework, the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the most recent being a service disruption on April 15, 2024, resulting in serious customer inconveniences,” the central bank stated.