🚴♂️ $1B Boost for Zomato
Zomato raised $1B in a major fundraise, its first since the 2021 IPO. It issued 336.5M shares priced at $3 each, attracting significant institutional interest. Leading Indian mutual funds like Motilal Oswal, ICICI Prudential, HDFC, and Kotak took substantial stakes. Motilal Oswal acquired 20.8% of the shares issued, cementing its position as the largest investor.
📦 Strategic Domestic Shift
The fundraise reduces Zomato's foreign ownership below 50%, transforming it into a domestic firm. This pivotal change allows Blinkit, Zomato’s quick-commerce arm, to adopt an inventory-led model, enabling direct control of products and warehouses. This strategy strengthens Zomato’s market position amid rising competition in India's quick-commerce industry, projected to reach $6.5B annually.
💰 Rivalry Heats Up
Zomato's timing is noteworthy, following Swiggy’s $1.35B IPO and Zepto’s $350M funding this month. Zomato’s shares, discounted by 5% during the fundraise, dipped 1% on Friday but remain up 127.7% this year. Bank of America analysts highlighted Zomato’s need to maintain its 40% market share as rivals like Flipkart, Reliance, and Amazon prepare to enter the quick-commerce space.
🌟 CEO's Vision for Growth
Zomato’s CEO, Deepinder Goyal, emphasized the importance of the fundraise, stating that the additional $1B complements the firm’s $1.3B reserves to stay competitive. With its second consecutive quarterly profit and a market cap of $30B, Zomato is poised to dominate the sector. Analysts agree that early investments in quick-commerce will be critical for sustaining leadership.
Will Zomato maintain its quick-commerce lead?
