September 14, 2021 04:11 PM
Zomato shares witnessed volatility in intraday trade on September 14 after one of the top executives at the food- delivery platform quit.
Gaurav Gupta, who was elevated as Chief Operating Officer in 2018 three years after joined the company and as the founder in 2019. Gupta was also the face of the company in the run-up to its hugely successful IPO so he gave the resignation.
The stock jumped 7 percent in the first half to hit an all-time high of RS 152.75 but cooled off to trade with mild gains. At 1345 hours, the stock was trading 1.26 percent higher at RS145.
The stock has been gaining of late as the company exit its grocery delivery and Nutraceutical businesses. Nutraceuticals are food-related product that provides medical or health benefits.
Zomato decided to wind up its nascent grocery delivery service due to gaps in order fulfilment, poor customer experience and increasing competition from rivals promising express delivery in 15 minutes.
The company said its investment in Grofers would generate better outcomes than its in-house grocery effort