Shares of Zomato Fell by Over 14% after Blinkit Deal

Food delivery company Zomato is preparing to acquire grocery delivery startup Blinkit. After this news, Zomato stock started to witness a decline. The company's shares have fallen by 7.90% on Tuesday to Rs 60.65. Earlier on Monday, Zomato shares saw a fall of more than 6 percent. It seems that this deal of Zomato is not going well with the market.

Let us tell you that the stock of Zomato has plummeted more than 15 percent so far. The impact of the fall in the stock is also being seen in the valuation of Zomato. In two days, the valuation of Zomato has dropped by about $1 billion. For information, let us tell you that Zomato has bought Blinkit for Rs 4,447 crore ($ 568.16 million) in an all-stock deal.

China's Ant Group-backed Zomato already holds over 9% stake in Blinkit. Blinkit was formerly known as Grofers. Regarding this, Zomato said that this acquisition is in line with our strategy to invest in Quick Commerce Business. According to this deal, Albinder Dhindsa will remain Blinkit founder.