Food delivery platform Zomato announced that its board will consider raising funds by issuing equity shares through a qualified institutional placement (QIP) in a meeting scheduled for October 22, 2024. The company disclosed this plan in an exchange filing but did not specify the amount of investment under consideration. The filing stated, “… a meeting of the board of directors of the Company is scheduled to be held on Tuesday, October 22, 2024, inter-alia, to consider and approve… raising of funds by issuance of equity shares by way of qualified institutions placement, as may be permitted under applicable laws…”
On the same day, Zomato’s board will also review and approve the company’s financial results for the September quarter of 2024.
Zomato’s performance has been on an upward trajectory, with net profit soaring to INR 253 crore in Q1 FY25, compared to INR 2 crore in the same quarter last year. Operating revenue saw a 74% jump, reaching INR 4,206 crore in the June quarter, driven by the strong growth of Blinkit.
The company is also set to launch a new app called ‘District’ to enhance its going-out business. Additionally, Zomato has hired Kunal Khambhati, former head of live events at BookMyShow, to boost its events section. Industry reports suggest Zomato may relaunch its quick parcel service, Xtreme, to refocus on food delivery after its initial launch as a logistics service in October 2023.
