Layoffs by Zomato erase $360 million from Info Edge’s market value

Info Edge India Ltd. saw its market value erode by about Rs 26 billion ($360 million) after a news report said, a food-delivery unicorn the job-posting website is invested in, fired more than 500 employees.

Zomato Media Pvt., in which Info Edge holds a 26.38% stake, laid off 541 people on Sept. 7, the Business Standard newspaper reported on Sunday. Info Edge shares, which rose 1% Sept. 9, have since fallen 10% as investors saw the layoffs as a sign the slowdown in consumption is spreading.

“This adds to the growing noise about a slowdown affecting revenue of consumer companies,” said Purvesh Shelatkar, head of institutional brokering at Monarch Networth Capital Ltd. in Mumbai. “News about layoffs is an overhang on the stock now.”