Khushi Taparia
17 Oct 2024
Zomato has announced that its board will meet on October 22, 2024, to consider raising funds through Qualified Institutional Placement (QIP). The company has not disclosed the exact amount it plans to raise, pending board approval and necessary regulatory approvals.
During the same meeting, the board will also review and approve the financial results for the quarter ended September 2024. This follows a strong Q1 FY25 performance where Zomato posted a net profit of INR 253 Cr, up from INR 2 Cr in the same period last year. The company’s operating revenue saw a significant 74% increase, reaching INR 4,206 Cr, driven by the growth of its quick commerce subsidiary, Blinkit.
The raised capital is expected to help Zomato expand its "going-out" vertical, which includes the acquisition of Paytm's entertainment ticketing business earlier this year for INR 2,048 Cr. Zomato also plans to launch a new app called "District" to scale its events business and may relaunch its Xtreme parcel service with a focus on food delivery.
As competition heats up in the quick commerce space with players like Zepto, Swiggy Instamart, Flipkart Minutes, BigBasket, and JioMart, Zomato's strategic expansions and potential fundraising could give it an edge in the market. #Zomato #QIP #Fundraising #FoodTech #QuickCommerce #FinancialResults #GoingOut #Events #ZomatoExpansion #Investment #Startups #StockMarket #BusinessNews #Ecommerce #TechTrends #ProfitGrowth #MarketCompetition
