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.

Shares	Share Price	Change*	Market cap today*	Change in market cap since last close*
Nykaa	₹1499.95	-5.86%	₹71,113.36 crore	- ₹4,426.64 crore
PolicyBazaar	₹604.25	-3.98%	₹27,183.50 crore	- ₹1,040.50 crore
Zomato	₹58.85	-3.92%	₹46,326.32 crore	- ₹1,890 crore
Paytm	₹558.00	-2.52%	₹36,465.70 crore	- ₹942 crore

*As on 9:52 a.m. on May 6, 2022
Source: BSE

The year $4 for these tech stocks, which $4only 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 $4 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 was off to a $4 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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