Zomato has secured $1 Billion through a Qualified Institutional Placement (QIP), its first significant fundraising effort since going public in 2021. The funds will primarily be used to expand its quick-commerce subsidiary, Blinkit, and bolster its position in the fiercely competitive Indian quick-commerce market.
The QIP, launched on November 25, 2024, aims to raise ₹8,500 crore at a floor price of ₹265.91 per share. A significant portion of the funds—₹2,137 crore—will be allocated to building and managing dark stores and warehouses, essential for improving Blinkit’s delivery network and reducing order fulfillment times. Blinkit aims to expand its network to 1,000 dark stores by the end of the fiscal year, with plans to double this figure by 2026
In addition to infrastructure expansion, Zomato will channel ₹2,492 crore towards marketing, branding, and technological advancements, including enhancements to its cloud infrastructure. This push is part of a broader strategy to capture a larger share of the quick-commerce market, which is projected to grow from $3.34 billion in 2024 to $9.95 billion by 2029
The announcement of the QIP has had a positive impact on Zomato’s stock, which rose 7.6% to its highest level in three months. CEO Deepinder Goyal also extended his salary waiver until March 2026, a move seen as reinforcing investor confidence in the company’s long-term vision
As competition heats up with rivals like Swiggy Instamart and Zepto also expanding their operations, Zomato’s latest fundraise signals its intent to not only maintain but expand its leadership in India’s evolving quick-commerce landscape
