Zomato sheds nearly $1 billion in valuation over two days after Blinkit deal

Shares of Zomato Ltd fell as much as 8.2 per cent on Tuesday, extending losses for a second straight day as investors questioned the rationale of the company’s deal to buy local grocery delivery startup Blinkit.

The Ant Group-backed food delivery firm said on Friday it would acquire Blinkit for Rs 4,447 crore in stock, as it tries to gain a foothold in the fiercely competitive quick delivery market.

The deal comes after it bought a more than 9 per cent stake in SoftBank Group-backed Blinkit for nearly Rs 518 crore in August, with a promise to invest as much as $400 million in the Indian quick-commerce market over the next two years.