Zomato Plans Rs 8,500 Cr QIP Launch In December, Strengthens Balance Sheet Amid Rising Competition

As per media reports, food delivery and quick commerce leader Zomato is preparing a qualified institutional placement (QIP) offering valued up to Rs 8,500 crore (around $1 billion), with Morgan Stanley leading the process. Sources indicate that the QIP could launch in December, pending market conditions, and that Zomato may bring on additional investment banks to support the syndicate. The final deal size could reportedly range between $800 million and $1 billion.

According to media reports, the timing of Zomato’s QIP plans closely follows Swiggy’s recent IPO on November 13, which raised Rs 11,327 crore and saw a listing gain of 7.69 percent, closing at Rs 420 per share on the NSE. The heightened activity in the quick-commerce space is seen as Zomato’s strategic response to its competition, especially as it navigates the evolving industry landscape.

The proposed QIP, according to media reports, seeks shareholder approval, with a voting deadline of November 22. Zomato reportedly informed investors that the capital infusion is intended solely to reinforce its balance sheet, with no immediate plans for minority investments or acquisitions.

As per media reports, Zomato has highlighted the significant growth in its annualised adjusted revenue, which has reportedly expanded fourfold from Rs 4,640 crore at its IPO in July 2021 to Rs 20,508 crore as of Q2 FY25. This period also saw a decrease in Zomato's cash reserves, from Rs 14,400 crore to around Rs 10,800 crore, largely attributed to funding losses in its quick-commerce division and past acquisitions.

Media reports further suggest that Zomato has underscored the need to boost its cash balance to maintain a competitive edge, particularly given the expansion of its business.