Foodtech and quick commerce major Zomato has gotten shareholder endorsement to raise Rs 8,500 crore through Qualified Institutional Placement (QIP). The company passed a board determination for this fundraiser fair ahead of its rival Swiggy’s IPO.

As per reports, Zomato has contracted venture bank Morgan Stanley to handle the modern QIP round.

The capital will be raised through a qualified institution placement to qualified investors through issuance of value offers, Zomato educated in a stock exchange filing.

The new financing is anticipated to heighten competition, especially in the fast commerce space. Swiggy, with Rs 4,500 crore raised through its IPO, is well-capitalized, whereas Zepto has comparable capability taking after its later Rs 3,000 crore funding.

Zomato’s fundraising is aimed at reinforcing its adjustment sheet and monetary position to compete viably with these peers.

The firm has moreover gotten approval for usage of Zomato Worker Stock Option Plan 2018, Zomato Worker Stock Option Plan 2021, Zomato Representative Stock Option Plan 2022 and Zomato Employee Stock Option Plan 2024 through believe course and amendments.

Moreover, it has gotten authorization to provide an interest-free loan to Foodie Bay Employees ESOP Trust to execute Zomato ESOP plan 2018, 2021, 2022, and 2024.

For the monetary year ending in Zomato has overseen a 68.5% quarter-on-quarter growth in its operating revenue to Rs 4,799 crore in Q2 FY25 as compared to Q2 FY24 (Rs 2,848 crore). The firm moreover detailed a 4.8X spike in net benefit to Rs 176 crore in Q2 FY25.

According to a later report by Motilal Oswal, Zomato-owned Blinkit leads the fast commerce showcase with a 46% share, taken after by Zepto in the moment put with a 29% share. Swiggy Instamart positions third, holding a 25% market share.

Source: Entrackr