Zomato to use portion of Rs 8,500 cr raised via QIP on advertising and marketing
A significant portion of the proceeds will be directed towards expanding the operations of Zomato’s quick commerce unit Blinkit, particularly through investments in dark stores and warehouses.
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Food tech major Zomato has raised Rs 8,500 crore through a Qualified Institutional Placement (QIP). The QIP, approved by the Fund Raising Committee of Zomato's board, was closed on November 28, 2024, following submissions of applications and funds by eligible qualified institutional buyers. This fundraising marks Zomato's first since its initial public offering (IPO) in July 2021.
A major portion of the raised capital, amounting to Rs 2,137 crore, will be allocated to the expansion of Zomato’s quick commerce unit, Blinkit, with a focus on developing dark stores and warehouses. The company also intends to use additional funds for advertising and marketing, aiming to strengthen its position in the competitive food delivery and quick commerce sectors.
The company's qualified institutional placement (QIP) document released earlier stated that Deepinder Goyal, the founder and CEO of Zomato, voluntarily waived his salary for another two years. Goyal had initially foregone his pay starting April 1, 2021, for a period of 36 months. This new decision extends the waiver until March 31, 2026, bringing the total duration of the new salary waiver to five years.
As of now, Goyal holds a 4.2% stake in Zomato, valued at over Rs 10,000 crore. Zomato's share price has soared by more than 300% over the past two years.
Goyal recently captured public attention with a job posting on his social media accounts for a Chief of Staff position. The job description called for a "hungry" candidate with empathy and common sense. Initially, the posting included a requirement for applicants to donate Rs 20 lakh to Zomato's Feeding India charity, but Goyal clarified that the condition was only meant to filter serious applicants.
The viral post garnered widespread positive and negative reaction from netizens, with Shaadi.com's founder Anupam Mittal also joining the bandwagon. Mittal shared a cheeky post on his LinkedIn: "All those who can't afford to pay my friend Deepi 20 lacs, pls send me your application. I am looking for a Chief of Staff too, although I don't know exactly what one does, I figure it can be your first assignment."
