Zomato's revenue lower than Blinkit but I feel Zomato still has not taped real growth, I believe it still has scope to improve. Middle class people still prefer to go to Kirana store and buy stuff mostly for entire month. They buy from quick commerce only in urgency or being lazy( telling from personal experience) I believe middle class people do check a lot while paying money on quick commerce if it is high eventually cancels transaction. And hidden fees are always there so if quick commerce wants to increase they should work on this otherwise normal people are not coming for them.
So first of all, as always, a great breakdown. Thanks for sharing this knowledgeable newsletter, Parth Sir and The Valuation School Team.
If we talk about e-commerce, the gap is still wide for Blinkit. Most of the revenue is generated from metropolitan cities like Delhi, Bangalore, etc. If Blinkit has to grow, it has to tap the untapped market, that is, Tier II, Tier III cities, or penetrate more into rural areas.
But if we also see the mindset of an Indian middle to lower-class consumer, whose daily needs are sometimes on a credit basis at most Kiryana stores, in my opinion, Quick Commerce is still overvalued.
Because at the end of the day, e-commerce companies have to penetrate themselves into more areas. Time will tell how Tier II and Tier III people will react to this change from Kiryana stores to Quick Commerce apps.
I truly loved reviewing your financial report and gave me a ray of hope that I may actually stimulate interest in finance. Thank you for making it easier for me to understand.
Great content Parth sir and TVS. I think there’s a mistake in the newsletter. Correct me if I’m wrong. It is written “Swish for Fashion” but actually Swish is for food delivery not fashion.
Zomato's revenue lower than Blinkit but I feel Zomato still has not taped real growth, I believe it still has scope to improve. Middle class people still prefer to go to Kirana store and buy stuff mostly for entire month. They buy from quick commerce only in urgency or being lazy( telling from personal experience) I believe middle class people do check a lot while paying money on quick commerce if it is high eventually cancels transaction. And hidden fees are always there so if quick commerce wants to increase they should work on this otherwise normal people are not coming for them.
So first of all, as always, a great breakdown. Thanks for sharing this knowledgeable newsletter, Parth Sir and The Valuation School Team.
If we talk about e-commerce, the gap is still wide for Blinkit. Most of the revenue is generated from metropolitan cities like Delhi, Bangalore, etc. If Blinkit has to grow, it has to tap the untapped market, that is, Tier II, Tier III cities, or penetrate more into rural areas.
But if we also see the mindset of an Indian middle to lower-class consumer, whose daily needs are sometimes on a credit basis at most Kiryana stores, in my opinion, Quick Commerce is still overvalued.
Because at the end of the day, e-commerce companies have to penetrate themselves into more areas. Time will tell how Tier II and Tier III people will react to this change from Kiryana stores to Quick Commerce apps.
If quick commerce and normal Kiran stores create his own "Nich" in Indian market, then both survive in long term sustainable.
I truly loved reviewing your financial report and gave me a ray of hope that I may actually stimulate interest in finance. Thank you for making it easier for me to understand.
Great content Parth sir and TVS. I think there’s a mistake in the newsletter. Correct me if I’m wrong. It is written “Swish for Fashion” but actually Swish is for food delivery not fashion.