Zomato Raises $1 Billion via QIP, Strengthening Domestic Investor Base
- ByStartupStory | November 29, 2024
Online food delivery giant Zomato has successfully raised $1 billion (₹8,500 crore) through a Qualified Institutional Placement (QIP), marking its first major fundraise since its IPO in 2021. The capital was raised by issuing and allotting 33.64 crore equity shares at an issue price of ₹252.62 per share.
This fundraising initiative saw strong participation from domestic mutual funds, with Motilal Oswal’s mutual funds receiving the lion’s share of 21% of the issue. ICICI Mutual Fund was allotted 4.25 crore shares, accounting for 12.78% of the QIP, while HDFC Mutual Fund and Kotak Mutual Fund secured 5.95% and approximately 6% of the issue, respectively.
The QIP opened on November 25 and concluded on November 28, marking a significant step for Zomato in enhancing its domestic investor base. The company’s CEO Deepinder Goyal stated, “This QIP underlines our commitment to strengthening our business and further solidifying our position in the competitive quick commerce market.”
The move is expected to reshape Zomato’s cap table by increasing domestic ownership, aligning with a broader industry trend. Peer companies like Zepto are also leaning towards domestic investments. Zepto, which competes in the quick commerce space, has raised $1.35 billion in the last six months, including $350 million led by Motilal Oswal’s Private Wealth division.
Zomato faces intense competition from established players like Amazon and Flipkart, which are expanding their quick commerce operations. However, this latest fundraising effort is viewed as a strategic step to maintain its competitive edge.
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