Zomato Denies Shiprocket Acquisition Rumors, Cautions Investors Against Incorrect News

In the rapidly changing domain of food delivery services, every whisper of a potential acquisition can send ripples through the market. Especially, when the whispers are concerning market leaders like Zomato which recently found itself at the epicenter of some speculation. Reports surfaced, suggesting a $2 billion acquisition deal with logistics technology start-up, Shiprocket. However, Zomato’s CEO, Deepinder Goyal, entered the fray not with a blaze of excitement but with a composed denial, steering the narrative and calming the waters amid the brewing storm. The CEO also cautioned investors against incorrect news and suggested they do not act on such rumors. In this article, we will discuss the impact of this announcement on the food-delivery sector and Zomato shares.

Image Credits: The Financial Express

Zomato’s Denial:

In the age of instant information dissemination, Goyal took to X (formerly Twitter) to address the murmurs surrounding Zomato’s supposed interest in acquiring Shiprocket. With a measured and deliberate tone, he denied the news of a $2 billion acquisition deal, cautioning investors against being swayed by inaccurate information circulating in the market. The denial was not merely a statement; it was a strategic move to provide much-needed clarity and stability amid the uncertainty.

Market Response:

Following Goyal’s carefully crafted denial, the market responded with a nuanced approval. Zomato’s shares, akin to a ship finding its course after a tempest, opened higher on December 22. By 10:00 am, they were trading over 1 percent higher at Rs 128.85 on the National Stock Exchange (NSE). This subtle surge suggested that investors, somewhat reassured by the captain’s steady hand, were willing to stay on board as Zomato navigated through uncertain waters.

Jefferies’ Insightful Report:

Before Goyal’s official statement echoed through the market, Jefferies, the international brokerage firm, offered its insights with a measured analysis. Without resorting to grand predictions, Jefferies cast a discerning eye on the rumored acquisition. It illuminated Zomato’s existing 5 percent stake in Shiprocket from a previous investment, subtly suggesting a potential disconnect and emphasizing that, on the surface, the acquisition might seem unrelated to Zomato’s core pursuits.

Analyzing Zomato’s Strategic Moves:

Jefferies’ report served as a flashlight into Zomato’s strategic playbook. It illuminated the company’s historical inclination for seemingly less relevant investments and questioned the necessity for further diversification at this juncture. With a substantial $1.4 billion resting comfortably on its books and existing ventures showing promise, the report hinted that Zomato might not need to cast its net too wide in the pursuit of new opportunities.

Market Performance and Investor Sentiment:

Before the storm of rumors, Zomato shares had weathered their fair share of waves. On December 21, they closed 2.2 percent higher at Rs 128.20 on the National Stock Exchange (NSE). In 2023, the stock exhibited the resilience of a seasoned sailor, delivering an impressive 112 percent in returns. This stellar performance stood in stark contrast to the more conservative 15 percent rise of the benchmark Nifty 50. Zomato’s ability to weather market speculations showcased not just resilience but a sea of support from investors.


In the maritime adage, “Smooth seas do not make skillful sailors,” lies a profound truth that resonates in the business world: Facing speculations head-on is an inherent part of the journey. Zomato’s response to the Shiprocket acquisition rumors wasn’t a theatrical performance but a strategic maneuver in the vast ocean of market dynamics. As the weeks unfold, it remains to be seen whether Zomato’s steady course correction and commitment to transparency will keep its ship sailing toward greater success in the ever-choppy waters of the business world. The company’s ability to navigate storms and emerge stronger will undoubtedly shape its narrative in the eyes of both investors and industry observers alike.