Tue Jan 21 04:00:00 UTC 2025: ## Zomato’s Disappointing Earnings Drag Down Swiggy’s Stock
**Mumbai, January 21, 2025** – The Indian stock market saw a significant downturn today, with shares of food delivery giants Zomato and Swiggy plummeting following the release of Zomato’s disappointing third-quarter earnings.
Zomato’s stock began its descent on Monday after the company announced a 57% drop in profitability, despite increased revenue. The decline was attributed to lower consumer demand and substantial investment in its quick-commerce venture, Blinkit. By the close of trading on Monday, Zomato’s share price had fallen from Rs 252.85 to Rs 239.75. The negative trend continued into Tuesday, with a further 8.43% drop by 11:50 am.
Swiggy, Zomato’s main competitor, mirrored this downward trend. Its share price also experienced a significant drop, falling by 7.50% by 11:52 am Tuesday. Market analysts anticipate similar performance struggles for Swiggy in the coming quarters.
Analyst opinions on Zomato’s future prospects are divided, with some predicting a rebound while others remain neutral. The overall market reaction highlights investor concern regarding the profitability of India’s food delivery sector.
This downturn comes amidst other news in the Indian startup sector. Ola Electric commenced production of its Roadster electric motorcycles, SamVed launched a $50 million fund for early-stage tech startups, KisanKonnect secured $4.5 million in Series A funding, and lingerie brand Krvvy raised Rs 6.1 crore in funding.
First Piper 