Zomato shares tumble 5% as investors fear disruption from ONDC

Zomato’s shares decreased by nearly 5% on NSE amid concerns about the impact of Open Network for Digital Commerce (ONDC) on the food delivery platform’s prospects. However, it’s too early to predict whether ONDC will alter the fortunes of Zomato, according to Deepak Shenoy, Founder of Capital Mind. While acknowledging that ONDC represents a challenge, Shenoy said he believed Blinkit could pose a bigger threat to Zomato than ONDC itself. The stock has been highly volatile since its July 23 IPO and has returned 3.6% over the past year versus 11% for the benchmark Nifty.