Zomato's Stock Surges 5% After Block Deal

28 Aug 2023 , 02:45 PM

deal involving 184 million shares, equating to a 2.14% stake in the company. Although the parties involved in the block deal remain undisclosed, sources suggest that SoftBank might want to sell some of its shares. This move follows the end of the lock-in period post the Blinkit deal on August 25.

SoftBank currently owns a 3.35% stake in Zomato, obtained during the Blinkit deal where it sold its holdings to the company. There’s speculation that other players like Tiger Global and Sequoia Capital, who also acquired shares through the Blinkit deal, might enter the market too.

Zomato’s focus has shifted to profitability, introducing a nominal platform fee of Rs 2 regardless of the cart value. Experts believe this move can potentially boost the company’s overall profitability.

Zomato reached a significant milestone, reporting a profit after tax of Rs 2 crore in Q2, a remarkable achievement considering its history of losses. This was possible by offsetting past losses against current profits per Indian tax laws.

Zomato’s revenue soared to Rs 2,416 crore in Q2, up by 70.9% compared to the previous year. The growth is attributed to the company’s loyalty program and the cooling of inflation, which boosted demand.

As Zomato continues to navigate the path toward profitability and growth, its evolving strategies and financial performance are capturing the attention of both market observers and investors.

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