Zomato considers raising funds through QIP

Zomato said its board would consider raising funds by issuing shares through qualified institutional placement (QIP) during its October 22 meeting.

However, it did not provide any information on the amount of funding that would be considered by the council.

The food tech giant’s board would also consider and approve its financials for the quarter ending September 2024 on the same day

Food technology giant Zomato on Thursday (October 17) said its board would consider raising capital through the issuance of shares through a qualified institutional placement (QIP).

The company made the disclosure in an exchange document. However, it did not provide any information on the amount of funding that would be considered by the council.

“… a meeting of the Company’s board of directors is scheduled to be held on Tuesday, October 22, 2024, inter alia, to consider and approve… fundraising through the issuance of equity shares through placement in qualified institutions , as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including notice for postal voting to obtain shareholder approval in this regard…,” the document said.

Additionally, the company’s board would also consider and approve financials for the quarter ending September 2024 on the same day.

Zomato’s net profit increased to INR 253 Cr in the first quarter of financial year 2024-25 (Q1 FY25) from INR 2 Cr in the year-ago quarter. Operating income jumped 74% to INR 4,206 crore during the June quarter, from INR 2,416 crore in the first quarter of FY24, as Blinkit delivered another quarter of strong growth.

However, the fast commerce space is facing intense competition as Zepto and Swiggy’s IPO-bound Instamart are also looking to increase their market share. The entry of Flipkart Minutes, BigBasket and JioMart has further increased the competition.

However, the fast commerce space is facing intense competition as Zepto and Swiggy’s Instamart bound for IPO also seek to increase their market share. The entry of Flipkart Minutes, BigBasket and JioMart has further increased competition in the segment.

The new capital would likely also help Zomato expand its “exits” vertical. Earlier this year, the food technology giant acquired Paytm Entertainment Tickets Deal for INR 2,048 Cr. The company led by Deepinder Goyal has seen strong demand for tickets sold exclusively on its platform for various events.

Zomato also plans to launch a new app ‘District’ for your outgoing business. As part of its efforts to expand the events vertical, Zomato recently hired Former Live Events and Head of IP at BookMyShow Kunal Khambhati.

According to industry reports, the Foodtech specialization is also thinking relaunching its Xtreme fast ordering service – which will now focus on the food delivery segment. Released in October 2023logistics service aimed at retailers with an independent application.

Additionally, the company has also seen recent leadership changes, with its co-founder and CPO Akriti Chopra resigns last month. Earlier this month, the company’s independent director Gunjan Soni also stepped down citing increased work commitments.

Zomato shares ended Thursday’s trading session 1.3% lower at Rs 270.65 on the BSE.