Zomato's mobile application and its website have crashed, a day before its listing on the Bombay Stock Exchange (BSE). It is an Indian multinational restaurant aggregator and food delivery company. Taking to Twitter, Zomato tweeted, "Our app is down, due to a widespread Akamai outage. Our teams are working to ensure all orders placed are delivered asap."
Akamai is the internet infrastructure company, which is the centre of the issue, has confirmed experiencing a “service disruption”. It tweeted: "Akamai is experiencing a service disruption. We are actively investigating the issue and will provide an update in 30 minutes."
Zomato's IPO launched a few days ago and it generated interest within the investor community and beyond. Market experts had a mixed opinion on the prospects of Zomato's stocks. Most of it can be attributed to the fact that the company is still incurring huge losses and it is predicted that the downward momentum will continue given its 'significant investments' to prime pump its growing business.
The website and app were down for more than 20 minutes and people took to social media to complain about the issue. "Can I get some shares as my refund?" a user tweeted.
Zomato has raised Rs 4,196 crore from 186 anchor investors ahead of the IPO. According to market watchers, Zomato shares are trading at a premium of GMP 23 on the grey market.
The Zomato IPO included a 9,000 crore fresh offering of equity shares and a 375 crore offer-for-sale (OFS) by existing investor Info Edge (India), the parent company of Naukri.com.