- Zomato announces surprise billion-dollar fundraise
- Move precedes rival Swiggy’s IPO
- Quick-commerce competition drives strategic decision
Money Moves in Mumbai
Zomato’s board has greenlit a bold $1 billion fundraising plan through share sales to institutional investors.
The Indian food delivery giant dropped this bombshell just weeks before rival Swiggy’s anticipated $1.4 billion IPO next month.
Strategy or Survival?
Market experts at Jefferies called the timing surprising, given Zomato’s healthy $1.2 billion cash reserves.
However, the move could serve a clever purpose—reducing foreign institutional ownership below 50% to unlock new business opportunities for its quick-commerce arm, Blinkit.
Quick Commerce Heats Up
The quick-commerce battlefield continues to intensify across India. Zomato leads through Blinkit in a market projected to hit $6.5 billion in annual revenue.
CEO Deepinder Goyal emphasized the need to maintain competitive edge against rivals Swiggy, Zepto, and BigBasket in this rapidly evolving sector.
