Zomato, a leading foodtech company, has opened its INR 8,500 Cr qualified institutions placement (QIP) and set a floor price of INR 265.91 per equity share, a discount of 2.8% from its closing price today.
Zomato receives shareholders nod
In an exchange filing, the company said that the fund raising committee of its board approved the opening of the QIP on Monday (November 25). Zomato said that the QIP issue price would be decided in consultation with the book running lead manager and it may offer a discount of not more than 5% on the floor price.
Continue Exploring: Zomato gets shareholders’ approval to secure INR 8,500 Cr via QIP
This development comes about two days after Zomato received approval from its shareholders to raise INR 8,500 Cr (around $1 Bn) through the QIP. The company had disclosed its plans to undertake its first fundraise post listing in October this year.
In its shareholders’ letter for the second quarter of the fiscal year, founder and CEO Deepinder Goyal said that the capital will enhance Zomato’s cash reserves.
“We believe that we need to enhance our cash balance given the competitive landscape and the much larger scale of our business today. We believe that capital by itself does not give anyone the right to win, but we want to ensure that we are on a level playing field with our competitors, who continue to raise additional capital,” he said.
Continue Exploring: Tata Consumer foresees continued volume growth, sees food inflation as ‘short-term blip’
Swiggy releases IPO
Since October, the company’s major competitors, Swiggy in the food delivery and quick commerce segment and Zepto in the 10-minute delivery space, have seen a significant capital infusion. Earlier this month, Swiggy turned into a publicly listed company and raised INR 11327.43 Cr from issuance of fresh shares in its initial public offering (IPO).
Meanwhile, quick commerce unicorn Zepto raised another $350 Mn last week. With this, it became the most heavily funded startup this year, raising over $1.3 Bn in 2024 alone.
