Execution is the only thing under our control, says Deepinder Goyal, founder and chief executive of online delivery firm Zomato on a day when the company's stock has tumbled even as rival Swiggy raised a massive funding round.

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"I have been waiting for a bear market for a long time now. That is when funding dries up for everyone and companies with the most solid team and execution rise to top," Deepinder Goyal, founder and CEO of Zomato told employees seeking to reassure them after Zomato's stock got roiled on Indian exchanges, plunging its market cap to $9.78 billion.

"Let's continue executing, creating value, cutting costs and like always not look at the stock price," he added.

Ironically this happened on a day when Swiggy announced a $700 million fundraise at a valuation of $10.7 billion. During its last funding round in July 2021, the valuation of the company was almost half of its existing valuation at $5.5 billion.

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The investment makes Bengaluru-based Swiggy the fourth decacorn, a privately-held firm valued at $10 billion or more, to emerge from India after fintech Paytm, hotel aggregator Oyo and ed-tech firm Byju's.

In his email to the employees, Goyal also said that even at $10 billion, the market cap of the company was higher than the its IPO valuation of $8 billion.

The selling in shares of Zomato along with other internet companies like Paytm, and PolicyBazaar has been triggered by the surge in global and domestic bond yields that has made their valuations richer than what their fundamentals dictate.

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"This is the thing about stock market and public companies -- valuations can swing massively without any change in the fundamentals of the business depending on your macro economic factors like inflation, interest rates etc," he said in the letter.

"We had no control over our valuation going up from $8 billion in the IPO to $17 billion at our peak, and vice versa now," he added.

Info Edge holds a 15.23 percent stake in Zomato, which at the peak of the latter’s stock price was valued at Rs 20,190 crore. However, the value of the stake has plummeted to Rs 11,032 crore in three months as Zomato’s shares fell 45 percent from the top.

(Edited by : Priyanka Deshpande)

First Published:Jan 24, 2022 7:17 PM IST