Info Edge has lost over $1.2 billion on its investment in Zomato, PolicyBazaar
- As startup layoffs continue, Mobile Premier League and FrontRow fire 245 peopleInfo Edge has lost ₹9,491 crore ($1.2 billion) in its investment in tech startups Zomato and PolicyBazaar.
- The market cap of both the companies have fallen significantly as the Indian stock market undergoes sharp correction.
- Info Edge owns 15.23% stake in restaurant aggregator business Zomato and 13.3% in financial services company PolicyBazaar.
AdvertisementSanjeev Bhikchandani-led Info Edge has lost ₹9,491 crore ($1.2 billion) in its investment in tech startups Zomato and PolicyBazaar since their stock market debut. The development comes as tech and startup stocks underwent a meltdown in the last few months.
According to Business Insider’s calculations, the Naukri.com and Jeevansathi.com’s parent company has made ₹12,656 crore ($1.6 billion) on its investment in the two companies as of May 30. This investment however was once worth more than twice of what they’re now worth —- at ₹22,148 crore ($2.8 billion), as per their listin day valuations.
Notably, Info Edge owns 15.23% stake in restaurant aggregator business Zomato and 13.3% stake in financial services company PB Fintech, which is the parent company of PolicyBazaar and PaisaBazaar.
Zomato’s shares listed at a premium of 51% as its shares opened at ₹116 in July 2022. Its market cap was at ₹98,211 crore on the closing bell on the first day of listing, down from the ₹100,000 crore mark it breached earlier in the day.
|Returns on the day of listing||Returns on May 30, 2022|
|Zomato||₹14,957 crore||₹8,537.9 crore|
|PB Fintech (PolicyBazaar)||₹7,191 crore.||₹4,119 crore|
The company’s market cap has halved since then to ₹56,060 crore, as of May 30. At the peak of Zomato's stock price, Info Edge’s shareholding in the company was valued at ₹20,190 crore.
PB Fintech — which offers insurance and loan facilities to customers — listed on the stock exchange at a premium of 17% on the Indian stock market on November 15, 2021. Its market cap was ₹54,070 crore on the closing bell on the day of market debut, versus ₹30,970 crore on May 30.
Info Edge is also an investor in other initial public offering (IPO)-bound companies like ixigo and Shiprocket.
The year 2022 has not been a great one for these tech stocks, which made their debut on the stock market only last year. Besides Zomato and PB Fintech, others like Paytm and Nykaa have also faced a significant drop in their share price and market capitalization ever since the startup of 2022.
Source: Bombay Stock Exchange
|Company||Percentage change in stock price since Jan 1, 2022|
|FSN E-Commerce (Nykaa)||-32.99%|
|One97 Communications (Paytm)||-52.13%|
One97 Communications, the parent company of Paytm, was not doing great in 2021 but 2022 was somehow even worse when it 52.13% of its share price and marketcap this year. The company’s valuation has eroded over 75% ever since its listing in November 2021.
Nykaa was off to a good start last year as the company managed to double investors’ money on the day of listing. However, it has too been on a downwards trajectory this year as it witnessed over 27% dip in its share price in 2022.
AdvertisementInfo Edge’s share price also fell nearly 32% since the start of this year.
Indian companies raised $14 billion via IPOs and their i-bankers made $300 million in fees
Nykaa to face competitive heat but its omni-channel experience maybe the game changer
As startup layoffs continue, Mobile Premier League and FrontRow fire 245 people
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