(June 28): Zomato Ltd lost about US$1.1 billion of market value in two days after the food-delivery platform announced the acquisition of loss-making quick-commerce firm Blink Commerce Pvt, a move some analysts said will weigh on future growth.
Zomato, among the first generation of Internet unicorns to tap India’s capital market, tumbled 8.4% in Mumbai trading on Tuesday on top of a 6.6% drop on Monday. The two-day fall to 60.3 rupees put shares 21% below the initial public offering price.
The acquisition will increase Zomato’s operating loss to fund activities of Blink and its Blinkit app, ‘shifting path to profitability back by another year’, Rahul Jain, an analyst at Dolat Capital Market Ltd, said in a note.
