Zomato has a market cap of $5.3 billion as its shares fell below 52 rupees. Zomato has a market cap of $5.3 billion, which is below its last private valuation of $5.4 billion. Zomato's chief rival in India was valued at $10.7 billion.
The drop in the lossmaking firm Zomato's market cap, which comes at a time when markets across the globe are crumbling, may hurt the retail investors' appetite for upcoming Indian IPOs of insurance firm LIC and delivery firm Delhivery. The market condition may affect the timing of listings from other Indian tech companies.
It’s all about perspective. If you were a Zomato employee and exercised your ESOP at ₹140 or higher price post IPO, you probably paid more cost per share as Income Tax, than what you can buy it today from market freely. At ₹56 / share price, markets are giving everyone ESOPs ;)
— Ashneer Grover (@Ashneer_Grover) May 9, 2022
Zomato, the first Indian consumer tech startup to go public last year, isn't the only firm from the country that is performing poorly on the stock exchanges. The market cap of the company has dropped to $4.5 billion, down from $16 billion in a round late last year and below the $19 billion valuation it listed. Bernstein had estimated the valuation of the company to be between $21 billion and $24 billion.
PolicyBazaar's market cap has fallen from $6 billion to $3.3 billion. It is doing better than before, trading at $8.3 billion. The firm had a market cap of $13 billion.
The country's private market is just as gloomy. Tiger Global and Canada Pension Fund have slowed down their investments. Several people familiar with the matter say that Tiger Global has become more conservative with how it prices deals in India and is focusing on early-stage deals.
H/T Madhav Chanchani of the CapTable.
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