Indian food delivery giant Zomato has announced that its board will consider raising funds via a qualified institutional placement (QIP) at a shareholder meeting on October 22, just weeks ahead of its rival Swiggy’s planned IPO on Indian bourses.
According to CNBC-TV18, Zomato is eyeing a fundraising of Rs 8,500 crore ($1.01 billion), significantly surpassing the $450 million that Swiggy aims to garner through its IPO scheduled for November.
Zomato’s fundraising plans come at a time when both domestic and global investors are closely watching India’s quick commerce market, dominated by players like Zepto, Swiggy’s Instamart, and Zomato’s Blinkit.
Mumbai-based Zepto is reportedly in talks to raise $100 million, marking its third funding round in just six months, according to TechCrunch’s report on Thursday. The quick commerce startup raised $340 million in August in a round led by General Catalyst, with participation from Dragon Fund (Mars Growth Capital) and Epiq Capital.
Industry experts suggest that Zomato may be looking to capitalise on the ongoing investor interest in the quick commerce space, which remains a hot sector in India.
Zomato is also scheduled to release its second-quarter results on Tuesday. In August, the company posted a net profit of Rs 253 crore ($30 million) for the June quarter (Q1), buoyed by increased demand for its food delivery and quick commerce services despite stiff competition.
Earlier, Zomato signed a Rs 2,048-crore ($244 million) deal to acquire Paytm’s entertainment ticketing business, strengthening its position against competitors.
Zomato, which went public on Indian stock exchanges in 2021 at Rs 116 per share, has seen its stock surge by 105% since its market debut.