Indian food delivery giant Zomato has raised $1 billion through institutional investors, marking its first major fundraising effort since its 2021 IPO. The company issued 336.5 million shares at ₹252.62 ($3) each, according to a stock exchange filing.
Prominent Indian mutual funds participated, with Motilal Oswal acquiring 20.81% of the shares, followed by ICICI Prudential (12.78%), HDFC (8.68%), and Kotak (5.95%). This funding reduces Zomato’s foreign ownership below 50%, reclassifying it as a “domestic” company. This enables Blinkit, Zomato’s quick-commerce arm, to adopt an inventory-led model, allowing greater control over products and warehousing.
The move follows rival Swiggy’s $1.35 billion IPO and Zepto’s $350 million raise this month. Despite a 1% dip in share value post-raise, Zomato’s stock remains up 127.7% year-to-date, with a market cap of $30 billion.
CEO Deepinder Goyal noted the additional funds will bolster competitiveness in the $6.5 billion quick-commerce market, where Zomato, with Blinkit, holds a 40% share against rivals like Swiggy and BigBasket. Analysts highlight the importance of Zomato’s first-mover advantage in capturing a projected market of 30 million households.
