Zomato gets shareholders nod to raise Rs 8,500 Cr via QIP

Foodtech and quick commerce major Zomato has received shareholder approval to raise Rs 8,500 crore through Qualified Institutional Placement (QIP). The company passed a board resolution for this fundraise just ahead of its rival Swiggy’s IPO.

As per reports, Zomato has hired investment bank Morgan Stanley to initiate the process of the new QIP round.

The capital will be raised by way of a qualified institutions placement to eligible investors through an issuance of equity shares, Zomato informed in a stock exchange filing.

The fresh funding is expected to intensify competition, particularly in the quick commerce space. Swiggy, with Rs 4,500 crore raised through its IPO, is well-capitalized, while Zepto has comparable firepower following its recent Rs 3,000 crore funding.

Zomato’s fundraise is aimed at strengthening its balance sheet and financial position to compete effectively with these peers.

The firm has also received approval for implementation of Zomato Employee Stock Option Plan 2018, Zomato Employee Stock Option Plan 2021, Zomato Employee Stock Option Plan 2022 and Zomato Employee Stock Option Plan 2024 through trust route and amendments.

Moreover, it has received authorization for providing interest free loan to Foodie Bay Employees ESOP Trust for implementation of Zomato ESOP plan 2018, 2021, 2022 and 2024.

For the fiscal year ending in Zomato has managed a 68.5% quarter on quarter growth in its operating revenue to Rs 4,799 crore in Q2 FY25 as compared to Q2 FY24 (Rs 2,848 crore). The firm also reported a 4.8X spike in net profit to Rs 176 crore in Q2 FY25.

According to a recent report by Motilal Oswal, Zomato-owned Blinkit leads the quick commerce market with a 46% share, followed by Zepto in second place with a 29% share. Swiggy Instamart ranks third, holding a 25% market share.