Ahead of Zepto IPO, Deepinder Goyal's Zomato, Swiggy lose Rs 16000 crore due to...

In one of the most competitive markets, food delivery service providers Zomato and Swiggy saw their shares dip after the quick commerce firm Zepto is mulling selling of its share to raise $250 million ahead of its initial public offering (IPO). 

Together, the two companies lost Rs 16,000 crore in investor wealth on Tuesday. Zomato separately lost Rs 12,500 crore with 6% of its share dwindled and closed at Rs 209.81 on the NSE. Meanwhile, Swiggy's stock gone down 4% and ended at Rs 337.50. This does not come as a surprise as Macquarie, the Australian multinational rating and finance agency had already gave a warning to investors on food delivery and quick commerce firms, according to a report by CNBC TV18.  

The food and quick commerce market has seen a massive increase recently, as new ventures drive the competition. The Bloomberg report said that Motilal Oswal Financial Services Ltd. and Edelweiss Financial Services Ltd, through their private equity arms, are building a discussion with Zepto, the Bangalore-based startup, over the company’s secondary share sale. As the company moves ahead with a proposed IPO, these discussions would aid in enhancing domestic ownership. 

Surprisingly, Macquarie put on restrictions on food delivery companies and also gave good reviews to fast-food chains like Westlife, which operates McDonald's in certain parts of India, and Devyani, which manages popular outlets like KFC and Pizza Hut in India.  

Comparing Zomato and Swiggy’s performance, both are trading while going down over 2 per cent. The Deepinder Goyal-owned Zomato, which now owns Blinkit and Hyperpure, lost the biggest share among the two. Its share fell by 5.29 per cent or Rs 11.79 per share. This took the overall value of the Gurgoan-based company stocks to Rs 211.01 per piece.