Zomato’s shares dropped by 5.4% to INR 256 on the Bombay Stock Exchange (BSE) today (October 18), following the company’s announcement that its board might raise funds through qualified institutional placement (QIP).
Zomato’s market cap slumps to INR 2,28,987 cr today
Despite recovering some losses, Zomato’s stock ended the day 4.9% lower at INR 257.40 on the BSE. About 10.7 crore shares were traded today. The company’s market cap was INR 2,28,987 crore (around $27.2 billion) by the end of the day.
Continue Exploring: Zomato eyes fresh fundraise of INR 8,500 Cr, first since 2021 IPO
In the wider market, Sensex rose 0.27% to close at 81,224.75 after two days of losses. Zomato didn’t reveal how much funding its board will discuss on October 22, but reports suggest they’ll consider raising INR 8,500 crore (about $1 billion).
Additionally, the company reportedly asked the Reserve Bank of India (RBI) to limit foreign institutional investors’ shareholding to 49%. The new funds will probably be used by Zomato to invest in Blinkit and expand its ‘going-out’ business.
Zomato to open 2000 dark stores by 2026
After Blinkit had a strong Q2, Zomato announced plans to grow its dark stores to 2,000 by the end of 2026. Meanwhile, the quick commerce market is heating up with new competition from Flipkart Minutes, Tata-owned BigBasket, and JioMart, all aiming for a share.
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Meanwhile, Swiggy Instamart is planning an IPO, and Zepto might raise another $100 million after recently raising over $1 billion. Despite this, Blinkit co-founder and CEO Albinder Dhindsa said the company isn’t worried about new competitors.
Looking ahead, Zomato has seen strong demand for its going-out services after buying Paytm’s entertainment ticketing business for INR 2,048 crore. They now plan to launch a new app called ‘District’ for this segment.
