Zomato raises $1B from domestic mutual funds through QIP
The fundraise is expected to bring about a change in its cap table, giving further ownership to domestic investors.
has raised $1 billion through qualified institutional placement (QIP), marking its first major fundraise since its IPO in 2021.
Deepinder Goyal’s Zomato on Friday allotted about 21% of its QIP to various arms of Motilal Oswal’s mutual funds, just after the private wealth unit of the financial services giant led the fundraise of quick commerce peer Zepto.
Zomato approved the issue and allotment of 33.64 crore equity shares, at an issue price of Rs 252.62 apiece, to raise Rs 8,500 crore or almost $1 billion.
ICICI Mutual Fund, through various funds, was allotted 4.25 crore shares, amounting to 12.78% of the issue. Domestic mutual funds, including HDFC, were allotted 1.97 crore, amounting to 5.95% of the QIP. Kotak, through its through funds, was allotted about 6% of the issue.
The issue opened on November 25 and closed on November 28.
Gurugram-based Zomato's fundraise is expected to bring about a change in its cap table, giving further ownership to domestic investors, something that its peers, including Zepto, are also targeting.
This comes at a time when the company is facing stiff competition in the quick commerce space with the entry of established players like Amazon and Flipkart.
Zomato's peer Zepto has raised $1.35 billion over the last six months; its latest round of $350 million was led by Motilal Oswal’s Private Wealth division, along with investment from Indian HNIs and family offices.
Edited by Swetha Kannan