Shares of Indian food delivery company Zomato fell below Rs 52 crore each, reaching a market cap of $5.3 billion as tech shares continue to plummet globally. With a market cap of $5.3 billion, Zomato is currently trading below Final private valuation ($5.4 billion) from early 2021. Swiggy, Zomato’s main rival in India and a much younger company, is last. worth 10.7 billion dollars.
The drop in market capitalization of loss-making company Zomato, comes at a time when markets around the globe is falling apart, which could hurt retail investors’ appetite for the upcoming Indian IPOs of insurance company LIC and delivery company Delhivery. Market conditions could also affect the listing times of several other Indian tech companies, including budget hotel chain Oyo and financial services firm MobiKwik.
Zomato, India’s first consumer technology startup to go public last year, isn’t the only Indian company to underperform on stock exchanges. Paytm’s market capitalization has dropped to $4.5 billion, down from $16 billion in a round from late 2019 and far below the $19 billion valuation it listed. (Worth thanks to Bernstein, who estimated Paytm’s value to range from $21 billion to $24 billion.)
Online insurer PolicyBazaar’s market capitalization has fallen to $3.3 billion, down from the $6 billion valuation the company filed for its IPO. Online fashion commerce Nykaa, which trades at $8.3 billion, is doing relatively better. The company made its debut on the stock exchanges in $13 billion in market capitalization.
In the country’s private market, things appear to be equally bleak. Several major investors including Tiger Global and the Canadian Pension Fund have slowed their investment pace. Tiger Global, a rainmaker in last year’s Indian unicorn storyis now largely focused on domestic early-stage deals and has become more cautious with how prices rotate, according to several people familiar with the matter.