Zomato raises Rs 8,500 cr via QIP; Rs 2137 cr allocated to Blinkit expansion
As per reports, the funds will be used for developing dark stores and warehouses
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Published: Dec 2, 2024 2:10 PM | 1 min read
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Zomato has raised Rs 8,500 crore through a Qualified Institutional Placement (QIP). Almost a fourth of the proceeds, Rs 2137 crore has been allocated to the expansion of Blinkit, Zomato’s quick commerce unit.
The funds will be utilized for developing dark stores and warehouses, strengthening the unit’s presence and market share across metros and beyond.
The company has also allocated a significant portion of the raised funds to advertising and marketing. It’s likely a strategic response to the rising competition in the quick commerce sector with the entry of numerous new players.
Earlier this year, Flipkart entered the quick commerce sector with Flipkart Minutes - becoming a direct competitor to Zomato’s Blinkit and Swiggy Instamart. Myntra too has launched its M-Now pilot in Bengaluru, delivering clothes in select Bengaluru locations within 2 hours.
This round of fundraising marks a milestone for Zomato as it’s the first since the company’s initial public offering (IPO) in July 2021. As per reports, the company’s founder Deepinder Goyal has voluntarily waived his salary for another two years.
Adding to the earlier announced salary waiver of 3 years, it brings the total duration to 5 years. Goyal currently holds a 4.2% stake in Zomato, which has seen its share price soar by 300% in the past 2 years.
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