Zomato – Should you order?

My notes

1. Blinkit has broken even. Q4 GOV was 4k crs out of which ~1800 crs is NCR only or ~45%.
2. NCR is growing at 7% QoQ and there’s still some space in dark store addition.
3. Store count should 2x in next 1 year and steady state EBITDA margins would be 4-5% of GoV
4. BLR and other cities will start gaining focus now.
5. No plans to reduce 20 rupee fee… focus on creating a service where consumers can pay (on comeptition with Zepto / Instamart as Blinkit goes to Mum & BLR)

Conservatively, Blinkit should 2x its GoV over the next year to around 20k crs. Underlying EBITDA being 800 to 1000 crs. Combined with Food Delivery, we’re looking at 2000 to 2200 crs.

Though actual EBITDA is likely to trend lower because of 0 EBITDA guidance on Blinkit.

Cash profits however will continue to trend higher.