Shares of foodtech major Zomato slumped as much as 5.4% to INR 256 during the intraday trading on the BSE
The stock shed some of the losses to end the day 4.9% lower at INR 257.40 on the BSE
Zomato’s board will consider raising funds via QIP next week. While the company didn’t disclose the quantum of funding, as per reports it plans to raise INR 8,500 Cr
Shares of foodtech major Zomato
slumped as much as 5.4% to INR 256 during the intraday trading on the BSE today (October 18), a day after the company said that its board would consider raising funds via qualified institutional placement (QIP).
However, the stock shed some of the losses to end the day 4.9% lower at INR 257.40 on the BSE.
As many as 10.7 Cr shares of Zomato were traded during today’s session. The company’s market capitalisation stood at INR 2,28,987 Cr (around $27.2 Bn) at the end of the day.
In the broader market, Sensex closed the day’s trade up 0.27% at 81,224.75 after two consecutive sessions of decline.
While Zomato didn’t disclose the quantum of funding its board plans to consider in its meeting on October 22, reports said that the board will consider raising INR 8,500 Cr (about $1 Bn).
Apart from this, the company is also said to have sought the Reserve Bank of India’s (RBI’s) approval to cap the shareholding of foreign institutional investors in the company at 49%.
The fresh capital will likely be used by Zomato to invest in its quick commerce arm Blinkit and scale up its ‘going-out’ business.
As Blinkit delivered another strong quarter for Zomato in Q2, the foodtech giant said it plans to increase the number of dark stores of the quick commerce arm to 2,000 by the end of 2026. Besides, the quick commerce space is also seeing intense competition with the entry of Flipkart Minutes. Tata-owned BigBasket and JioMart are also eyeing a share in the quick commerce market.
Among the major competitors, Swiggy Instamart is going for an IPO, while Zepto is said to be in talks to raise another $100 Mn after raising over $1 Bn in the last few months.
Amid all these, Blinkit cofounder and CEO Albinder Dhindsa said the company is not perturbed by new competitors entering the market.
Meanwhile, Zomato has also been seeing strong demand for its going-out vertical after the acquisition of Paytm’s entertainment ticketing business for INR 2,048 Cr. It now plans to launch a new app ‘District’ for its going-out business.
