Business Desk 
Nov 29, 2024
Prominent India-based food delivery platform Zomato has raised $1 billion from institutional investors three years after its initial public offering (IPO).
According to a stock exchange filing issued on Friday, the grant of a massive amount also comes to be the first major fundraising, followed by the food delivery and quick-commerce giant publicly listed around approximately 336.5 million shares with each worth ₹252.62 each ($3) in a qualified institutional placement.
The financial aid was led by big helping hands from leading Indian mutual funds, with Motilal Oswal standing as the largest investor, bagging 20.81% of the shares issued by Zomato.
The runner-ups among key drivers of funds include ICICI Prudential owning 12.78% shares, whereas HDFC and Kotak funds secured 8.68% and 5.95%, respectively.
With $1bn funds at hand, the company has now become "domestic" by status, leading to a significant decrease in its overseas ownership as it retreated below 50%.
The fundraiser will now allow Zomato's Blinkit, its quick-commerce wing, to be running on an inventory-led model since it's at the moment relying on domestic firms, bringing direct control over products and warehousing to the table.
Analysts believe that the capital has strategically arrived at an opportune moment, coming just weeks after rival Swiggy secured $1.35bn in IPO earlier this month, with Zepto, another new quick-commerce contender, taking home $350 million this month in a deal arranged by Motilal Oswal.
