Zomato said its board would consider raising funds by issuing equity shares via qualified institutional placement (QIP) during its meeting on October 22
However, it didn't provide any information about the quantum of funding that would be considered by the board
The foodtech giant’s board would also consider and approve its financials for the quarter ended September 2024 on the same day
Foodtech giant Zomato
on Thursday (October 17) said that its board would consider raising funds by issuing equity shares via qualified institutional placement (QIP).
The company made the disclosure in an exchange filing. However, it didn’t provide any information about the quantum of funding that would be considered by the board.
“… a meeting of the board of directors of the Company is scheduled to be held on Tuesday, October 22, 2024, inter-alia, to consider and approve… raising of funds by issuance of equity shares by way of qualified institutions placement, as may be permitted under applicable laws, subject to such regulatory/statutory approvals, including the notice for the postal ballot for obtaining the shareholders’ approval in this regard… ,” the filing said.
Besides, the company’s board would also consider and approve its financials for the quarter ended September 2024 on the same day.
Zomato’s net profit surged to INR 253 Cr in the first quarter of the financial year 2024-25 (Q1 FY25) from INR 2 Cr in the year-ago quarter. Operating revenue jumped 74% to INR 4,206 Cr during the June quarter from INR 2,416 Cr in Q1 FY24, as Blinkit delivered another quarter of strong growth.
However, the quick commerce space is seeing intense competition, as Zepto and IPO-bound Swiggy’s Instamart are also looking to increase their market share. The entry of Flipkart Minutes, BigBasket and JioMart have further increased the competition in the segment.
The fresh capital would likely help Zomato scale up its ‘going-out’ vertical as well. Earlier this year, the foodtech giant acquired Paytm’s entertainment ticketing business for INR 2,048 Cr. The Deepinder Goyal-led company has been seeing strong demand for the tickets being sold exclusively on its platform for various events.
Zomato also plans to launch a new app ‘District’ for its going-out business. As part of its efforts to scale up the events vertical, Zomato recently hired BookMyShow’s former live events and IP head Kunal Khambhati.
As per industry reports, the foodtech major is also mulling relaunching its quick parcel service Xtreme– which will now focus on the food delivery segment. Launched in October 2023, the logistics service focused on merchants with an independent application.
Additionally, the company also saw recent leadership changes, with its co-founder and CPO Akriti Chopra resigning last month. Earlier this month, the company’s independent director Gunjan Soni also stepped down citing increased work commitments.
Shares of Zomato ended Thursday’s trading session 1.3% lower at INR 270.65 on the BSE.
