Zomato is currently under the spotlight as its board prepares to consider raising funds via a Qualified Institutional Placement (QIP) on October 22, alongside approving its Q2 FY25 financial results. This would be Zomato’s first fundraising since its 2021 IPO. The exact amount Zomato seeks to raise through the QIP has not been disclosed yet. The timing of this move is noteworthy, as its competitor Swiggy is also preparing for its IPO to raise $450 million.
Ahead of the announcement, Zomato’s stock dipped by over 2%, continuing a trend from the previous session where it ended 1.4% lower at ₹270.30. Despite this dip, Zomato’s stock has rallied impressively, surging 117% year-to-date and 138% over the past 12 months, outperforming the broader market indices.
Zomato’s financial performance has been strong, with the company reporting a consolidated profit of ₹253 crore in Q1 FY25, up significantly from ₹2 crore in the same period last year. Its revenue also rose 74% year-on-year to ₹4,206 crore. Additionally, Zomato is sitting on cash reserves of ₹12,539 crore (~$1.5 billion), with its food delivery business already profitable, and its Blinkit quick commerce arm nearing break-even.
The QIP decision comes amid increasing competition in the food delivery space, as companies gear up for capital-intensive growth and market expansion.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Investors are encouraged to perform their own research and consult with certified financial professionals before making any investment decisions. The views expressed in this article do not necessarily reflect those of the author or the publication, and past performance is not indicative of future results.
Leave a Reply