Zomato Raises ₹8,500 Crore Via QIP at ₹252.62 Per Share to Accelerate Growth Plans

In a significant move to bolster its expansion efforts, Zomato, the food delivery and quick commerce giant, has successfully raised ₹8,500 crore through a Qualified Institutional Placement (QIP). This marks Zomato’s first major fundraising initiative since its listing on the stock exchanges in July 2021.

Fundraising Details

The Fund Raising Committee of Zomato’s board approved the allotment of 33.65 crore equity shares to qualified institutional buyers at a price of ₹252.62 per share, reflecting a 5% discount from the floor price of ₹265.91. The QIP, launched on November 25, 2024, concluded on Thursday, drawing participation primarily from domestic mutual funds.

Key Participants

Prominent domestic mutual funds, including Motilal Oswal, ICICI Prudential, HDFC, and Kotak, were allotted more than 5% of the equity shares each. Motilal Oswal emerged as the largest investor, acquiring 21% of the allocation with an investment of approximately ₹1,750 crore.

Strategic Allocation of Funds

Zomato plans to utilize the funds raised to enhance its balance sheet strength and support its growth and expansion initiatives. A substantial portion of the capital will be directed toward its quick commerce arm, Blinkit, to expand infrastructure like dark stores and warehouses.

Read Also: Zepto Secures $350 Million in Funding, Surpasses $1.35 Billion in 2024

In addition to Blinkit, Zomato aims to drive growth across its other business verticals:

• Food Delivery: Its flagship offering.
• Hyperpure: A B2B supply chain for restaurants.
• District: A platform for booking dining experiences, live performances, movies, and more.

Market Position and Shareholding

Zomato, with a market cap of nearly ₹2.47 lakh crore, continues to dominate the food tech sector. Its public shareholding stands at 98.73%, with founder and CEO Deepinder Goyal holding a 4.18% stake.

Despite this positive development, Zomato’s shares closed at ₹279.50 on Friday, reflecting a 2.31% decline on the BSE.

Conclusion

The successful QIP underlines Zomato’s focus on long-term growth and diversification. As the company strengthens its financial footing, it is well-positioned to scale its operations in the food delivery and quick commerce domains, further solidifying its leadership in the Indian food tech ecosystem.