Ant-backed Zomato loses $1.1 billion market value in just two days.

•  After zomato announced the acquisition of a loss making quick commerce firm Blink-commerce, zomato lost about $1.1 billion of market value in just 2 days
• Some analysts suggested zomato, this acquisition would weigh on future growth.
• Zomato, was one of the first generation unicorns to tap into the Indian capital market.
• Its tumbled 6.6 percent on monday and 8.4 percent on tuesday at Mumbai trading, this is a huge breakdown.
• This fall had made the shares go 21 percent less than the IPO  price.
• Operating cost of zomato will go high because they have to fund activities of blink and its Blinkit application.
• Due to inorganic routes of acquisitions to expand, many new age technology firms and companies as well as their business models, their valuation are being questioned.
• Jack Ma's Ant Group Co.  and Sequoia Capital backs up Zomato, and they invested in Blink in 2021
• The company said the acquisition will help increase its hyperlocal delivery fleet and reduce some costs.
• The acquisition widens Zomato's scope beyond food delivery and highligjts the management's broader ambitions of capturing a larger slice of India's $1.3 trillion commerce market, said an analyat of JM Financial Institutional Securities.