Zomato shares plunge 50%

Investors who hold shares of food aggregator Zomato became poorer by nearly 50 per cent since the start of 2022.

To be precise, they lost 49 per cent in the year-to-date period as the stock hit an all-time low. Reports that the Competition Commission of India (CCI) had ordered a detailed probe against food delivery platforms, Zomato and Swiggy, for alleged unfair business practices with respect to their dealings with restaurant partners also weighed on the share prices recently.

The two online food delivery platforms are allegedly involved in delayed payment cycles and exorbitant commissions. Post the CCI’s order, Zomato said in a regulatory filing to the exchanges that it will continue to work closely with the Commission to assist them with their investigation and explain to the regulator why all of its practices are in compliance with competition laws and do not have any adverse effect on competition in India. Also, in the recent months, mutual funds and foreign portfolio investors too have sold some of their shares in the company, according to reports.

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