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Zomato, Paytm and Nykaa shares fall sharply amid heavy tech sell off

Stocks of listed startups and new age internet companies have been witnessing heavy sell off since last week. But the Monday morning trade proved to be too brutal especially for the high-profile listed startups Zomato, Paytm and Nykaa.

All these stocks are currently trading way below their listing price, with Zomato currently trading below Rs 100 for the first time and Paytm falling below the psychological mark of Rs 1,000 last week itself.

Zomato’s share was trading at Rs 91.70, tanking down as much as 30% during the Monday morning. The market valuation of the food tech startup has now gone below Rs 80,000 mark. On other hand,   Paytm’s stock continued its free-fall during the Monday as the share traded at the historic low of Rs 902.5, going down by nearly 6.07% since the trading session on Monday.

Meanwhile, Nykaa’s stock did not fare too well during today’s trade. The stock price of Nykaa was trading at Rs 1776, down by nearly 11%. Nykaa, by the way, is the only profitable listed startup. The price of other listed startups like CarTrade and PolicyBazaar are also trading way below the issue price.

The freefall in the prices of startup stocks during the Monday trade is hardly surprising given that the market is experiencing a heavy fall. The BSE is currently down by nearly 1,433 points.

While the brutal sell off at NSE and BSE cannot be discounted, the analysts were always skeptical about startup’s lofty valuation. Considering that today the stock prices of most startups are trading way below their issue price, these negative perception about startup’s lofty valuation can be termed as entirely justified.

Startups unrealistic valuation has always been a contentious issue, with many experts calling these valuation a bubble that has been partially created by the VC industry.

Meanwhile, Zomato and Paytm were among the hot trending topics on Twitter on Monday. As their stock price touched the historic low, Twitteriti were busy coming up with amazing memes and tweets that perfectly depicted the sorry state-of-affair of the stock price.

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