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Zomato sheds nearly $1 bn in valuation over two days after Blinkit deal

The company's shares fell as much as 14% since the announcement of the deal with the grocery delivery startup

Zomato, food delivery, online
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Reuters
Shares of India's Zomato Ltd fell as much as 8.2% on Tuesday, extending losses for a second straight day as investors questioned the rationale of the company's deal to buy local grocery delivery startup Blinkit.

The Ant Group-backed food delivery firm said on Friday it would acquire Blinkit for Rs 4,447 crore ($568.16 million) in stock, as it tries to gain a foothold in the fiercely competitive quick delivery market.

The deal comes after it bought a more than 9% stake in SoftBank Group-backed Blinkit for nearly Rs 518 crore in August, with a promise to invest as much as

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jun 28 2022 | 2:58 PM IST

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