Wink it, From Zomato to Blinkit
With the company's stock experiencing a significant rise of over 70% in the past six months, investor interest is keenly focused on its future trajectory.
Market Growth Projections
Online Consumption and Food Delivery
Drawing attention on National Sample Survey Office (NSSO) data from FY94 to FY23, it has enabled us to predict the online consumption growth in India.
From the courtesy of ICICI Securities, it has become easier to understand the market trend and future prospects.
This model forecasts that the food delivery market can grow at a compound annual growth rate (CAGR) of over 20% year-on-year (YoY) to reach USD 40 billion by FY33E (with FY24E estimated at around USD 7 billion).
This optimistic projection is supported by the assumption that Blinkit’s food business gross order value (GOV) will maintain a growth rate exceeding 20% YoY through FY33E, even without significant market share gains.
Advertising and Restaurant Ecosystem
Increased Advertising Intensity
One of the pivotal findings from our bi-annual restaurant survey, covering 220 restaurants across 40 cities, is the continued increase in advertising intensity.
With advertising penetration reaching up to 63%, the restaurant ecosystem is becoming more competitive and digitally savvy. I mean, just look at this -
This trend underscores the growing reliance of restaurants on digital platforms like Blinkit for customer acquisition and retention.
Improved Advertiser Satisfaction
The survey also highlights a notable improvement in advertiser satisfaction, which has risen to 91%. This increase in satisfaction can be attributed to the effective targeting and measurable return on investment that digital advertising on platforms like Blinkit provides to restaurants.
As a result, the mutual reliance between Blinkit and the restaurant industry is poised to strengthen, further bolstering Blinkit's advertising revenue streams.
Discussing Numbers
Stabilizing EBITDA Margins
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