Zomato’s share price surged almost 8 per cent in early trade on the BSE on Friday following the revision of discounts at the Open Network for Digital Commerce (ONDC). The food tech company’s shares finally settled at Rs 71.15 apiece, up 4.71 per cent, on Friday.
ONDC has revised its incentive scheme for participants in a bid to reduce dependency on discounts for adoption. The new scheme caps the maximum discount at Rs 100 per order, compared to the earlier cap of Rs 125, thus limiting the threat of it potentially ending the duopoly of Zomato and Swiggy.
The stock is in the news since Chris Wood, Jefferies’ global head of equity strategy, introduced an investment in Zomato with a 4 per cent weighting in his India long-only portfolio.
Last month, the food delivery platform reported a narrowing of losses on both year-on-year (YoY) and sequential bases for the March quarter. Its consolidated loss narrowed to Rs 187.6 crore in the fourth quarter of FY23, from Rs 346.6 crore in the December quarter (Q3), and Rs 359.7 crore in the corresponding quarter of FY22.