New-age startups Zomato, PolicyBazaar, Nykaa and Paytm witness sharp corrections, market cap craters by over ₹6,000 crore

• New-age startups Zomato, PolicyBazaar, Nykaa and Paytm came under extensive selling pressure as Indian stock exchanges fell nearly 2%.
• Shares of these companies fell in the range of 3-6%, with the market cap cratering by ₹6,219 crore (approx. $810 million).
• Nykaa witnessed the highest fall in its share price as it lost $577 million in market cap.
• It is followed by Zomato that lost $264 million in market cap due to a 3.92% decrease in its share price.

Share prices of all new-age startups — Zomato, PolicyBazaar, Nykaa and Paytm — witnessed a major fall during early morning trade on Friday. All these shares fell in the range of 3-6%, cumulatively losing out on market cap of ₹6,219 (approximately $810 million).

Nykaa, which is run by FSN E-Commerce Ventures Limited, witnessed the biggest fall in its share price. The company was trading at ₹1499.95 at 9:52 am, which is a decline of 5.86% compared to the previous close. The company lost ₹4,426.64 crore (close to $577 million) in market cap in the same time frame.

It is followed by Zomato that lost ₹1,890 crore ($264 million) in market cap due to a 3.92% decrease in its share price. The company was trading at ₹58.85 at 9:52 a.m. on May 6.
*As on 9:52 a.m. on May 6, 2022
Source: BSE

The year 2022 has not been a great one for these tech stocks, which made their debut on the stock market only last year. Each of these stocks have lost a significant chunk of their market cap and have largely been facing a downwards trend since the start of this year.

According to Bombay Stock Exchange, Zomato’s share price has slumped nearly 60% since this year, wiping out nearly ₹64,000 crore in investor wealth in the process. Similarly, PB Fintech — the parent company of PolicyBazaar and PaisaBazaar — has lost roughly 37% of its value since January 3, the first day of trading in 2022.

One97 Communications, the parent company of Paytm, was anyway not doing great in 2021 but 2022 was somehow worse for the company, which lost 58.06% of its share price and market cap this year. The company’s valuation has eroded over 75% ever since its listing in November 2021.

$NYKAA.NSE Has Come Back to the BaseCan Test 1300 Levels Overall Trend Lower Highs Lower Lows Fundamentally has High Valuations Resistance at TrendlineMay consolidate within 1300 to 1700

— (@Techno_Charts) May 06, 2022

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.

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