Investors were left scratching their heads as Zomato shares took a tumble today. Reports surfaced of a large stake changing hands via a bulk deal, signalling a major movement behind the scenes.
Rumours swirled that Ant Financial, Alibaba’s financial services arm and one of Zomato’s early backers, looked to offload a slice of its ownership. With over 2% of equity up for grabs worth Rs 3000 crore, bullish selling stoked concern.
Last year, another Ant entity had cashed out a portion of its holding, reaping over Rs 3300 crore. Having backed Zomato from its startup days, was Ant’s support waning as the food tech giant established itself?
The sell-off showed buyers apparently less keen than Ant on Rs 159 per share—a discount to Tuesday’s closing price. Investors raced to understand it all as Zomato stock shed nearly 4%.
Yet optimists point to Zomato’s ongoing expansion beyond food delivery. Having posted three straight profitable quarters, analysts predict stability in its core and rapid progress in the developing quick commerce arm.
As Zomato establishes new strongholds, early backers may feel their job is done. But any potential change in the strategic interests of major shareholders is sure to spark debate.
