In one of the most competitive markets, food delivery service providers Zomato and Swiggy fell after fast-moving business company Zepto snapped up its share to boost its initial public offering (IPO).
Before Zepto IPO, Deepinder Goyal’s Zomato was…
In one of the most competitive markets, food delivery service providers Zomato and Swiggy fell after fast-moving business company Zepto snapped up its share to boost its initial public offering (IPO).
The two companies lost Rs 1.6 crore in investor wealth on Tuesday. Zomato lost Rs 125 billion, with 6% of its share down and a decline in Rs 209.81 in NSE. Meanwhile, Swiggy’s stock fell 4% to end at Rs 337.50. This is not like Macquarie, with Australian multinationals and financial institutions already warning investors about food delivery and fast business companies, according to a report from CNBC TV18.
The food and fast commercial markets have recently increased significantly as new businesses drive competition. Bloomberg reports that Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd are in discussions with Bangalore-based startup Zepto to discuss the company’s second share sale, Bloomberg reported. These discussions will help strengthen domestic ownership as the company moves forward with a proposed IPO.
Surprisingly, Macquarie has put restrictions on food delivery companies and has also given good reviews on fast food chains operating McDonald’s in certain parts of India and the fast food chains that manage KFC and India’s popular channels such as KFC Cabins.
Comparing Zomato and Swiggy’s performance, both are trading, down 2% at the same time. Deepinder Goyal, which now owns Blinkit and Hyperpure, loses its biggest share of both. Its share fell by 5.29 per cent or Rs 11.79 per share. This brings the total value of the Gurgaon-based company’s shares to Rs 211.01 per piece.
