Zomato, India’s leading food delivery platform, announced the successful completion of its ₹8,500 crore fundraising through a Qualified Institutions Placement (QIP) of equity shares. This capital-raising initiative, which received shareholder approval last week, underscores Zomato’s strategic focus on strengthening its financial position and expanding its operations, particularly in the quick commerce sector through Blinkit.
QIP Details and Pricing
The QIP involved issuing 33.64 crore equity shares at ₹252.62 each, including a premium of ₹251.62 per share. This price represents a 5% discount from the floor price of ₹265.91 per share. The offering opened on November 25 and closed on November 28, attracting robust interest from institutional investors.
Strong Investor Participation
Leading mutual funds, such as ICICI Prudential and Motilal Oswal, played a significant role in the QIP. Notably, Motilal Oswal acquired 6.92 crore shares, accounting for 20.81% of the total issue size. The substantial participation reflects investor confidence in Zomato’s long-term growth prospects.
Strategic Utilization of Funds
The ₹8,500 crore capital infusion is set to bolster Zomato’s financial stability and support strategic initiatives. A key focus area is the quick commerce segment, where Zomato aims to enhance its presence through Blinkit. This funding will enable Zomato to capitalize on the rapidly growing demand for ultra-fast deliveries, strengthening its market position.
Impressive Financial Performance
Zomato’s financial growth underscores its strong market position. In Q2 FY25, the company reported a 68.5% increase in operating revenue, reaching ₹4,799 crore compared to ₹2,848 crore in Q2 FY24. Net profit surged 4.8 times, hitting ₹176 crore in the September quarter, highlighting Zomato’s successful growth strategies and operational efficiency.
Increased Equity Capital
Following the QIP, Zomato’s paid-up equity share capital has risen to ₹917.28 crore, further solidifying its financial foundation and positioning the company for future growth.
This fundraising milestone marks a pivotal step for Zomato, enabling it to expand its quick commerce capabilities and strengthen its leadership in India’s dynamic food and grocery delivery market.
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