Zomato shares fell by 4.49% to 238.7 rupees (around US$2.7) during intraday trading on Monday on the Bombay Stock Exchange (BSE), continuing a seven-day losing streak that began on January 2.

The stock has now declined over 22% since its 52-week high of 304.5 rupees (around US$3.5) in December 2024.

Brokerage firm Jefferies downgraded Zomato, citing intense competition in the quick commerce sector, and lowered its price target to 275 rupees (around US$3.2) from 335 rupees (around US$3.9).

Jefferies highlighted challenges from existing rivals and new entrants, suggesting that Zomato may need to increase discounts.