By techycrunchy 
Indian food delivery giant Zomato has raised $1 billion through a qualified institutional placement, completing its first major fundraising since its 2021 IPO. The company issued approximately 336.5 million shares priced at ₹252.62 each (around $3) in a move that saw significant participation from leading Indian mutual funds.
Key Investors:
The funding round saw notable participation from top Indian mutual funds, with Motilal Oswal emerging as the largest investor, securing 20.81% of the shares. Other major investors included ICICI Prudential (12.78%), HDFC (8.68%), and Kotak (5.95%).
Impact on Zomato’s Ownership Structure:
This fundraise is particularly strategic for Zomato as it brings the company closer to being a domestic entity by reducing its foreign ownership below 50%. This shift is significant because it allows Zomato’s quick-commerce unit, Blinkit, to adopt an inventory-led model, which is currently restricted to domestic firms. This move gives Zomato more control over product sourcing and warehousing, improving its supply chain efficiency.
Timing and Competitive Landscape:
The capital raise comes at a pivotal time, following Swiggy’s $1.35 billion IPO earlier this month. The funding will help Zomato maintain its competitive position, especially in the rapidly growing quick-commerce sector. Additionally, Zepto, another leading player in this space, secured $350 million in funding this month.
Stock Performance:
Despite the share placement being offered at a 5% discount, Zomato’s stock dipped by approximately 1% on the announcement day. However, its stock remains up 127.7% year-to-date, and the company now holds a market cap of $30 billion.
Zomato’s co-founder and CEO, Deepinder Goyal, explained that the additional funds were essential to maintaining competitive parity in the increasingly crowded food delivery and quick-commerce market, despite the company already having $1.3 billion in cash reserves.