Zomato's Deepinder Goyal becomes billionaire: Check his net worth
Deepinder Goyal, the founder and CEO of food delivery company Zomato, has become a billionaire following a record rally in the company's shares. The stock has seen an impressive surge of over 300% since July 2023, setting a new record at ₹232 on the BSE. This surge pushed Zomato's market cap past ₹2 trillion. Goyal, who holds a 4.24% stake in Zomato with 36.95 crore shares, has become India's richest professional manager with a net worth exceeding ₹8,300 crore.
Goyal's journey from middle-class to billionaire status
Goyal, who hails from a middle-class background, graduated from IIT Delhi in mathematics and computing. Driven by his passion for food, he co-founded FoodieBay.com, which was later renamed Zomato.com, to streamline food ordering processes. With initial funding from Info Edge in 2011, Goyal quit his job to focus on Zomato's growth. The company quickly rose to prominence in India's food tech industry, becoming a unicorn in 2018.
Zomato's quick commerce business Blinkit set to surpass food delivery
Zomato's stock began its upward trajectory in 2023 amid expectations that its quick commerce business, Blinkit, may achieve EBITDA break-even by the first quarter of fiscal 2025. After reaching this break-even point, Blinkit is projected to increase investments, which analysts believe will help it surpass Zomato's food delivery business in terms of gross order value (GOV) sooner than anticipated. Analysts also predict that Zomato will prioritize growth investments over immediate profitability expansion to establish long-term dominance.
Blinkit's valuation surpasses Zomato's core food delivery business
According to Goldman Sachs, Blinkit has a higher implied value than parent Zomato's core food delivery business. The valuation of Blinkit has risen from $2 billion in March 2023 to $13 billion, with a per-share value of ₹119, surpassing food delivery at ₹98. Goldman Sachs also predicts that Blinkit's gross order value (GOV) will record a 53% CAGR from FY2024-27, with the GOV and EBITDA surpassing food delivery by FY29.
Zomato highlighted for strong growth prospects
Jefferies recently highlighted Zomato among 11 stocks with projected annual returns of 15% to 25% for the next five years. The company received a target price of ₹400 per share and was labeled a "compelling food delivery play" with strong growth prospects. This recognition underscores the potential of Zomato's business model and its ability to generate significant returns in the coming years.
