Zomato's Massive Fundraise: A New Era of Expansion

Food delivery giant Zomato raises Rs 8,500 crore through a Qualified Institutional Placement issue to fund its expansion plans. The fundraiser saw significant participation from domestic mutual fund houses, with Zomato aiming to strengthen its balance sheet and expand its various business ventures.

Zomato has successfully secured Rs 8,500 crore by selling equity shares to qualified institutional investors, including key domestic mutual fund houses. This strategic move aims to support the company's ambitious growth and expansion plans across its diverse businesses.

The Qualified Institutional Placement (QIP) issue, which commenced on November 25 and concluded on Thursday, marks Zomato's first significant capital raise since its public listing in 2021. The company's board allocated over 33 crore new shares to eligible institutional buyers at Rs 252.62 per share, presenting a 5% discount on the set floor price.

The funds will bolster Zomato's operations, including its quick-commerce wing Blinkit. Additionally, major mutual fund players, such as Motilal Oswal, HDFC, and Kotak, played a substantial role in the investment, with the CEO emphasizing the importance of the fundraise for strengthening the company's financial foundation.

(With inputs from agencies.)