Zomato Layoffs Erase Rs 2,600 Crore From India's Info Edge
Info Edge India saw its market value erode by about Rs 2,600 crore ($360 million) after a news report said a food-delivery unicorn the job-posting website is invested in fired more than 500 employees.
Zomato Media, in which Info Edge holds a 26.38 per cent stake, laid off 541 people September 7, the Business Standard newspaper reported Sunday. Info Edge shares, which rose 1 per cent on September 9, have since fallen 10 per cent as investors saw the layoffs as a sign the slowdown in consumption is spreading.
"This adds to the growing noise about a slowdown affecting revenue of consumer companies," said Purvesh Shelatkar, head of institutional brokering at Monarch Networth Capital in Mumbai. "News about layoffs is an overhang on the stock now."
Unlisted Zomato clocked a revenue of Rs 1,310 crore in the year ended March 2019, a near threefold jump from a year ago, according to the recent annual report of Info Edge. The company posted a loss of Rs 1,000 crore, up about 10-fold from 2018.
In comparison, Info Edge's revenue increased 20 per cent to about Rs 1,100 crore while its net income climbed 53 per cent to Rs 280 crore.