StartupTalky

Tag: zomato

  • Blinkit Unveils Feature for Deleting Order History

    Blinkit, Zomato’s fast commerce subsidiary, has implemented a novel feature that enables users to eliminate order history from their accounts. Albinder Dhindsa, the CEO and originator of Blinkit, disclosed the advancements on LinkedIn, a networking platform. Dhindsa stated in a post that the feature was introduced last week and that over one million orders have been deleted since its implementation. Customers can now delete orders from their Blinkit order history. Since the brand implemented this feature last week, 104,924 orders have been eliminated. Dhindsa highlighted the feature with a tagline, “A new year, a new order history.”

    Keep in mind that if an order is deleted, it cannot be restored, and the customer’s account will no longer include the details. At the moment, each order must be deleted separately; there is no way to delete several orders at once. Orders that are more than a year old can also be deleted.

    Blinkit Showing its Dominance in Quick Commerce Sector

    The most recent offering comes weeks after Blinkit strengthened its top management by appointing Vipin Kapooria, a former executive from Flipkart and OYO, as its new chief financial officer (CFO). This year, the giant of rapid commerce has launched numerous new products. It launched a new app called Bistro earlier this year, marking its entry into the rapid food delivery market. Additionally, it introduced “Blinkit Seller Hub,” which enables vendors to list themselves on the site, and started testing huge order fleets. Additionally, it introduced fast delivery of passport-sized pictures and the return option for items like apparel and shoes.

    Expanding its Operations in Jammu

    In keeping with Zomato‘s plan to extend its rapid commerce company to Tier II cities, the development coincided with Blinkit‘s expansion to Jammu. Over the past several years, the rapid commerce market has seen a dramatic increase in popularity throughout the nation. In light of this, Blinkit generated INR 1,156 Cr in revenue during the second quarter (Q2) of the fiscal year 2024–25 (FY25), which is more than twice as much as the INR 505 Cr it generated during the same period last year. Additionally, it was able to reduce its adjusted EBITDA loss from INR 125 Cr in Q2 FY24 to INR 8 Cr in the reporting quarter.

    A lot of experts are worried about the rapid commerce model since they think the ten-minute delivery won’t be profitable. However, Blinkit’s most recent figures seem to have disproved this theory. Many people have already hurried to predict that Blinkit will soon be the group waggon puller. Zomato’s other diversifications may surprise as well, in addition to the near-duopoly that Swiggy and Zomato have been experiencing in the Indian market lately.

    CCI Dismisses Abuse of Dominance Allegation Against InstaAstro
    The Competition Commission of India (CCI) has dismissed an abuse of dominance allegation against InstaAstro, ruling in favor of the astrology platform.
    StartupTalkyNitin Konde

  • Coca-Cola-Supported Foodtech Company Thrive Closes

    According to Krishi Fagwani, cofounder and CEO of the foodtech platform Thrive, it is the most recent Indian firm to cease operations. The cofounder blamed a lack of resources for the decision to shut down operations in a LinkedIn post. “We’ve worked hard over the years to develop a more equitable method of food delivery and discovery, which includes reduced commissions, more fair prices, socially guided discovery, and a human-centred relationship between eateries and their patrons. However, we were unable to obtain the resources needed to scale that goal,” Fagwani stated. The founders reflected on the lessons learnt, stating that it is “extraordinarily challenging” for tiny platforms to exist and that a “few well-funded giants” control the market. “In order to guarantee continuity for our restaurant partners, we are currently working to transfer Thrive ONDC, Thrive Direct, and the Thrive Marketing Suite to the appropriate industry partner,” he continued. He promised that throughout the transition phase, all services—including payments and tax compliance—would run smoothly. 42 people worked for the startup. 

    Why Thrive Opted for Closing its Operations?

    Thrive, which was founded in 2020 by Fagwani, Dhruv Dewan, and Karan Chechani, directly competed with Swiggy and Zomato and had partnerships with over 14,000 eateries across 80 locations. It gave restaurants the option of using one of the startup’s third-party logistics partners or their own employees to deliver the orders. Additionally, Thrive provided restaurants with a self-serve feature that allowed them to create their own sub-portals on its platform in order to receive direct online orders from customers. In contrast to Zomato and Swiggy, which charge 18–25% commission, the platform promised to charge only 3%.

    Zomato and the newly listed Swiggy are the two main players in the food tech industry. By making strategic acquisitions and altering their business structures, the corporations were able to weather the pandemic. They have both joined the race for rapid commerce.

    The truth is that a tiny number of wealthy giants still control the majority of the industry, making it extremely difficult for smaller, purpose-driven platforms like Thrive to grow to the size that eateries deserve.

    Coca-Cola’s First Investment

    Notably, Coca-Cola made its first investment in an Indian firm in 2023 when it purchased a 15% share in Thrive. In 2021, Jubilant FoodWorks, the company that runs Domino’s India, paid about INR 25 Cr to acquire a 35% share in Thrive. By doing this, Thrive becomes one of the minimum of 12 sponsored startups that were shut down in 2024.

    Tracxn, a data website, reports that Thrive has raised $2.5 million in equity capital over three rounds. Revenue for FY23 increased slightly to INR 2.5 crore from INR 2.3 crore the year before. Its net losses, however, increased to INR 7.4 crore from INR 2.8 crore the previous year.

    Decoding the Secret Behind Coca-Cola’s Marketing Strategy
    The success behind one of the most successful beverage brands, Coca Cola is its marketing strategy. Take a deep dive to understand it in detail.
    StartupTalkyPV Vyshnavi

  • Maharashtra Sends Zomato a GST Demand Notice for INR 803.4 crore

    The food delivery aggregator Zomato announced on 12 December that a tax demand of INR 803.4 crore, including interest and penalties, had been made by the Thane GST department. In a regulatory filing, Zomato stated that the company had received a demand order over the nonpayment of GST on delivery charges, along with interest and penalties.

    On December 12, Zomato Limited informed stock exchanges that it had received a GST order from the Joint Commissioner of CGST & Central Excise, Thane Commissionerate, Maharashtra, confirming the demand for INR 401,70,14,706/- (Rupees 415 crores seventy lakhs fourteen thousand seven hundred and six) in GST, along with interest as applicable and a penalty of INR 401,70,14,706/- (Rupees 415 crores seventy lakhs fourteen thousand seven hundred and six) for the period September 29, 2019, through March 31, 2022.

    Notice Due to Non-Payment of GST

    In its stock exchange statement, Zomato Limited stated that it had received a demand order over the nonpayment of GST on delivery charges, together with interest and penalties.

    The business stated that it feels it has a compelling case and will appeal to the relevant authority. “According to Zomato, the company has a compelling argument on its own merits, supported by the views of its outside legal and tax counsel. The business intends to appeal the order to the relevant authority,” Zomato stated. The shares ended the latest trading session on December 12 at Rs 285.60 each, down 2.12% (or INR 6.20) from the closing of the day before.

    Zomato on a Strict GST Scanner

    It is important to note that earlier this year, authorities in Gujarat, Karnataka, and Haryana sent Zomato several GST demand notices. In September, the West Bengal GST authorities last sent it a GST demand and penalty order of more than INR 17.70 Cr. The same West Bengali body had earlier in the month sent it a GST notice for INR 9.85 Cr. The company was served with a demand notice by Pune tax authorities for allegedly failing to pay taxes on the delivery fees that were collected from clients between July 2020 and March 2022. The most recent step for Zomato follows its first qualified institutional placement (QIP) in late November, which garnered INR 8,500 Cr (about $1 billion).

    In the meantime, Zomato CEO Deepinder Goyal, who frequently makes headlines for his odd tweets and comments, recently posted that the company was looking for a Chief of Staff and that the chosen candidate would need to pay the company INR 20 lakh in order to be hired. 

    He then stated that he never intended to charge individuals for the position, despite receiving over 18,000 applications. “This was no ordinary job posting. Goyal added, “As some have pointed out, ‘You have to pay us 20 lacs (sic) was just a filter to find people who had the power to appreciate the opportunity of a fast track career without getting bogged down by constraints in front of them.”

    Swiggy Unveils ‘Scenes’ to Elevate Event Experiences
    Swiggy launches its new ‘Scenes’ feature, designed to support and enhance event experiences with innovative services and seamless event management solutions.
    StartupTalkyNitin Konde

  • Swiggy Supports Events by Introducing its New “Scenes” Offering

    Foodtech giant Swiggy has introduced Swiggy Scenes, a new feature on its app, in what appears to be an attempt to strengthen its events and ticketing play. The new option, which was introduced under Swiggy’s “Dineout” offering, enables customers to reserve events, parties, and live music at Swiggy’s partner restaurants. Currently, customers can reserve over 55 events in Delhi, including live music, Christmas parties, and New Year’s celebrations. In Bengaluru, the firm has organised roughly 48 events. Swiggy wasn’t available right away to answer Inc42’s questions about the development. As soon as an answer is received, the story will be updated.

    Recently Launched Initiatives by Swiggy

    The launch of Scenes complements Swiggy‘s several other new developments over the past year or so. The company announced the introduction of One BLCK, a new premium invite-only membership club, on December 12. In October, it also introduced Bolt, a 10-minute meal delivery service. Nonetheless, this appears to be Swiggy’s first new product for its “out-of-home consumption vertical” in the previous 12 months. The vertical includes its restaurant reservation and booking platform Dineout as well as its exclusive events and experiences firm Swiggy SteppinOut.

    Swiggy’s Financial Progress

    In Q2 of FY25, Swiggy generated INR 60 Cr in sales from the vertical, a 71% increase over INR 35 Cr in the same quarter last year. Swiggy projected adjusted EBITDA break-even for the out-of-home consumption vertical for the current fiscal year in its investor presentation. In Q2 of FY24, the vertical’s deficit decreased 79% to INR 9.26 Cr from INR 44.34 Cr. During the reviewed quarter, the adjusted EBITDA margin as a percentage of its GOV was -1.3%, compared to -8.8% during the same period last year. This comes as Zomato, Swiggy’s fiercest opponent, has been strengthening its position in the ticketing market for a while.

    Zomato released District, a distinct app for its ticketing division, in November following the purchase of Paytm Insider earlier this year. Zomato provides its users with movie, event, and food options through the app. Through its first qualified institutional placement (QIP) in November, Zomato raised INR 8,500 Cr (about $1 billion) to support the expansion of its events and ticketing operations, as well as speedy commerce and food delivery.

    Cutting Down on Losses

    Revenue from its “Going Out” vertical increased 214% to INR 154 Cr in Q2 FY25 from INR 49 Cr in Q2 FY24. In the meantime, Swiggy reduced its consolidated net loss from INR 657 Cr in the previous quarter to INR 625.53 Cr in the September quarter, a 4.78% decrease. In Q2 of FY24, revenue increased by 30% to INR 3,601.45 Cr from INR 2,763.33 Cr.

    Swiggy Launches “One BLCK” Membership Plan
    Swiggy unveils “One BLCK,” a premium membership plan designed to offer exclusive benefits and services for its loyal customers.
    StartupTalkyNitin Konde

  • While Raising PT to INR 470, HDFC Securities Downgrades Swiggy to “Reduce”

    HDFC Securities, a broking firm, downgraded Swiggy from “add” to “reduce”; however, it raised its target price from INR 430 per share to INR 470. This would indicate a 9.2% decline from the stock’s last closing price. Swiggy’s stock closed on 4 December’s trading session on the BSE at INR 518.10 per share. During 5 December’s intraday trading session, the stock continued to rise, rising more than 11% to INR 576.95 on the BSE.

    Although Swiggy’s key performance indicators in the quick commerce and food delivery areas are improving, the company still trails Zomato, according to a recent report from analysts at HDFC Securities. According to the broking, Swiggy recorded a 4.8% quarterly increase in monthly transacting customers in the food delivery segment in Q2 FY25, while gross order value increased 5.6% on a quarter-over-quarter basis to INR 7,190 Cr. The company’s vigorous promotion of its subscription service, Swiggy One, was primarily responsible for this.

    Zomato is Still Leading the Race

    According to HDFC Securities, Swiggy continued to lag behind Zomato in the food delivery sector across all KPIs in H1 FY25. In H1, Zomato’s GOV increased by 24%, but Swiggy recorded a 14% growth in the food delivery market. Furthermore, the broking claims that Instamart, Swiggy’s rapid commerce division, is still trailing its Zomato rival Blinkit in terms of growth and unit economics.

    HDFC Securities emphasised that although Swiggy’s dark shop network has seen an improvement in order density, Blinkit has made more progress in terms of unit economics at a comparable scale. The broking stated that although the increase in client acquisition is positive, the present market pricing indicates that the path to convergence in rapid commerce with Blinkit is inevitable.

    Current Financial Structure of Swiggy

    Swiggy was downgraded by HDFC Securities after the Sriharsha Majety-led company’s operating revenue increased 12% QoQ to INR 3,601.45 Cr, but its net loss worsened sequentially by more than 2% to INR 625 Cr in Q2 FY25. Swiggy stated in its Q2 FY25 investor presentation that it aimed to achieve a consolidated adjusted EBITDA profitability by Q3 FY26. Additionally, a new subsidiary that will function in the “sports activities and amusement and recreation activities” section is being established by the foodtech company.

    Even if the food delivery market is more established and less competitive, Swiggy’s poor performance highlights the difficulties it faces, according to another broking business, HSBC Securities and Capital Markets (India). Swiggy was valued at $16 billion by HSBC, which included $1.3 billion in cash and investments, $10 billion for rapid commerce, and $5 billion for food delivery. Nevertheless, it does not anticipate that the overall business will achieve EBITDA breakeven before the fiscal year of 2028.

    Swiggy’s Food Delivery Business Limits Expansion Plans
    Swiggy’s food delivery business is focusing on enhancing operations in existing cities rather than expanding into new locations, prioritizing efficiency and growth.
    StartupTalkyNitin Konde

  • Zomato Grants Foodie Bay Employees’ ESOP Trust 47.75 Cr in Equity Shares

    The Foodie Bay Employees ESOP Trust, an employee welfare trust established by the foodtech company, has received 47.75 Cr equity shares from Zomato under various employee stock option programmes (ESOPs). The Deepinder Goyal-led firm announced in an exchange statement on December 2, that its board had authorised the issuance and distribution of 47.75 Cr equity shares under the Zomato ESOP 2018, ESOP 2021, ESOP 2022, and ESOP 2024 schemes, each with a face value of INR 1.

    The newly allocated shares are valued at INR 13,489.3 Cr (about $1.60 Bn) based on the stock’s most recent close. According to the filing, the company’s issued, subscribed, and paid-up equity share capital grew from INR 917.28 Cr to INR 965.03 Cr with the allocation of new equity shares to Foodie Bay Employees ESOP Trust.

    Strengthening the Cash Balance to Remain Ahead in the Race

    CEO Deepinder Goyal stated that Zomato needed to improve its cash balance because of the current competitive environment and the company’s much larger scale. It is anticipated that Zomato’s financial stability may suffer in the near future as a result of the growth of Blinkit, its rapid commerce division. This was made clear by Zomato’s Q2 FY25 results, which showed a 30% sequential drop in net profit to INR 176 Cr for the foodtech company. This was mostly caused by higher costs associated with Blinkit’s expansion drive. Strong performance across its meal delivery and quick commerce sectors drove a 14% quarter-over-quarter increase in operating revenue to INR 4,799 Cr in Q2 FY24.

    As part of their initiatives to reward staff, several modern internet businesses have issued ESOPs this year, including Delhivery, Nykaa, ixigo, and ideaForge, among others. The travel tech business ixigo gave 17.57 lakh stock options last month, while logistics giant Delhivery increased its ESOP pool by allocating 73K stock options. Only a few days after raising INR 8,500 Cr through the placement of eligible institutions—its first significant fundraising effort since its 2021 IPO—Zomato announced its ESOP.

    Furthermore, the median ESOP pool size grew from 9% in 2021 to 12.6% in 2024, and 90% of founders now talk about ESOPs with candidates during interviews or job offers, up from 75% in 2021. Additionally, the reasons for providing ESOPs have changed; in 2024, 40% of founders cited cost reductions, up from 28% in 2021. The founders cited the necessity to retain people as the second most important reason for putting these plans into action, behind creating a sense of ownership and company culture.

    Even with this increase, fewer than 30% of founders still fully understand the complexity of ESOPs, a percentage that hasn’t changed since 2021. Just 14% of founders felt educated about the tax consequences of ESOPs, which is a fairly low level of understanding.

    Swiggy Expands “Bolt” 10-Minute Delivery to 400+ Locations
    Swiggy extends its “Bolt” 10-minute meal delivery service to over 400 locations, making quick and convenient dining accessible across India.
    StartupTalkyNitin Konde

  • Hyperpure, Zomato’s B2B Vertical, Offers Quick Delivery

    Hyperpure, Zomato’s B2B supply division, has introduced the “Express” delivery service in response to the growing demand for speedy deliveries. The express delivery service will be accessible from 8 AM to 4 PM, according to the Hyperpure app. It will cost INR 99 and be available with Hyperpure’s regular next-day delivery. The products supplied at a premium price in comparison to the normal delivery option will be delivered within 30 minutes to 4 hours via the express service. 

    In the HoReCa (hotels, restaurants, and caterers) industry, the Hyperpure vertical provides goods to restaurants and other business-to-business purchasers. Fresh goods, fruits and vegetables, poultry, meat and seafood, and gourmet meals are some of the products it offers. It also offers complete supply chain, warehousing, and procurement services for restaurants, as well as end-to-end fourth-party logistics for restaurants. 

    Hyperpure has the Potential to Become as Big as Zomato

    Since Hyperpure is Zomato‘s sole business-to-business vertical, the company has been optimistic about it. The business stated in 2022 that Hyperpure might reach the size of its food delivery vertical because the addressable market here might be bigger than food delivery. Zomato said earlier this year that it is establishing a facility for Hyperpure to process value-added food supplies, such as spreads, sauces, and pre-cut and semi-finished perishable goods.

    Notably, Hyperpure’s sales in Q2 FY25 doubled from INR 745 Cr in Q2 FY24 to INR 1,473 Cr. It really made more money than Blinkit. In the September quarter of FY25, the fast commerce sector reported revenue of INR 1,156 Cr, more than double the INR 505 Cr recorded in the same period the previous year.

    Rapidly Expanding Quick Commerce Sector in India

    In recent years, the fast commerce market has grown significantly. The industry is now more competitive as a result of this. PhonePe‘s Pincode is the newest player in the fast delivery market, which is dominated by companies like Blinkit, Zepto, and Swiggy Instamart, according to a media report. Additionally, the most recent development follows Zomato’s INR 8,500 Cr qualified institutional placement (QIP) opening. For the QIP, the business has established a floor price of INR 265.91 per share, and it may give a discount of up to 5%.

    Myntra, a fashion portal owned by Flipkart, is testing M-Now, a speedy delivery service that offers delivery in specific Bengaluru pin codes in as little as 30 minutes to two hours.In a similar vein, FirstCry, a retailer of mother and newborn care supplies, announced during an earnings call on November 14 that it has made same-day delivery possible in roughly 40 Indian locations. In Borivali, Mumbai, Nykaa has also started a 10-minute delivery test. Even the cutting-edge logistics startup Delhivery intends to launch an intracity third-party quick commerce logistics service, providing brands with shared warehouses from which the Gurgaon-based business would send goods in a timeframe of one to two hours.

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  • Zomato Sets the Floor Price at INR 265.91 Per Share, Launches an INR 8,500 Crore QIP Offering

    On November 25, Zomato Ltd., a food delivery aggregator, launched its INR 8,500 Qualified Institutions Placement (QIP) offering. The floor price for each equity share was INR 265.91. The indicative price is INR 252.62 per share, which is 7.6% less than the closing market price of INR 272.9 per share on 25 November. 33.65 crore shares, or 3.8% of the total stock, are up for grabs.

    On November 23, 2024, the company declared that a plan to raise money through a Qualified Institutions Placement (QIP) had been authorised by its shareholders. Its board authorised a qualified institutions placement (QIP) last month, raising up to INR 8,500 crore. The company stated in a filing that the goal of the fundraising is to enhance the balance sheet at this time.

    Levelling Up the Reduced Cash Balance

    Due to the INR 2,014 crore agreement consideration for the purchase of Paytm’s entertainment ticketing business, Zomato said that its cash balance had decreased by INR 1,726 crore from the previous quarter.

    Zomato has announced that its equity shares, which have a face value of INR 1 apiece, are being issued in accordance with the applicable requirements of the Companies Act of 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. In its announcement, the business also stated that, with shareholder approval, it may provide a floor price discount of up to 5%.

    How Zomato Plans to Utilise Proceeds?

    Zomato intends to use the money raised mostly for marketing and advertising, as well as for growing the reach of its rapid commerce division Blinkit, according to the QIP’s preliminary placement document. INR 2,137 crore will be used for “expenditure towards setting up and running operations of dark stores and warehouses,” according to the statement. By the conclusion of the current fiscal year, Blinkit plans to have 1,000 dark stores—micro warehouses from which 10-minute deliveries are made—and 2,000 of these stores by the end of 2026. The company is currently engaged in a large expansion exercise. By the end of FY25, Zepto also plans to run more than 700 dark stores, and Swiggy Instamart wants to increase the number of its dark stores from about 557 as of June 30 to 741.

    In its prospectus, Swiggy stated that it intended to invest INR 1,179 to grow its rapid commerce business. Additionally, Zomato announced that it would invest INR 2,492 crore in “branding, marketing, and advertising initiatives across our business offerings.”

    Staying Ahead in the Race

    Zomato operates a business-to-business (B2B) grocery supply division called Hyperpure, a live events and ticketing vertical through its District app, and meal delivery, which is the company’s major business section. This is Zomato’s first fundraising effort since its July 2021 IPO, and it coincides with a period in which its competitors have raised substantial sums of money.

    Zepto, a 10-minute delivery service, has acquired more than $1.3 billion in the last four to five months, while its largest rival, Bengaluru-based Swiggy, collected INR 4,499 crore in primary capital through its first public offering (IPO) earlier this month. Deepinder Goyal, the founder and CEO of Zomato, announced last month that the company was gathering funds to fortify itself in the market.

    Zomato CEO Deepinder Goyal Extends Salary Waiver Until 2026
    Deepinder Goyal, CEO of Zomato, has extended his salary waiver until 2026, showcasing his commitment to the company’s growth and sustainability.
    StartupTalkyNitin Konde

  • Deepinder Goyal, CEO of Zomato, has Extended the Salary Waiver Till 2026

    Zomato revealed in its qualified institutional placement (QIP) documentation that its founder and CEO, Deepinder Goyal, has chosen to put his salary on hold for an extra two years, until March 31, 2026. The food delivery giant’s FY24 annual report stated that Goyal has previously waived his pay for 36 months, starting on April 1, 2021. With this most recent extension, he will be unpaid for a total of five years.

    According to the QIP document, Deepinder Goyal has voluntarily waived his salary for a period beginning on April 1, 2021, and ending on March 31, 2026, in letters dated March 24, 2021, and April 1, 2024, addressed to Zomato’s Board. During this time, he will continue to carry out his responsibilities as managing director and chief executive officer.

    Asking for INR 20 Lakh Donation From the Employee

    As of right now, Goyal owns a 4.2% share in Zomato, which is valued at about INR 10,000 crore. In just two years, Zomato’s share price has increased by more than 300%.

    Goyal recently made waves for hiring a “hungry” Chief of Staff for the company through a job posting on his X account. The person should be hungry with empathy and common sense, according to the post. Goyal first stated that the candidate would have to contribute INR 20 lakh to Zomato’s Feeding India charity as part of the employment qualifications, but he later clarified that this criterion was merely meant to filter out candidates.

    How Zomato Plans to Use its QIP Funds?

    In order to set up Blinkit‘s darkish stores and warehouses, Zomato has set aside INR 2,137 Cr. As of September 30, it had 791 dark-coloured stores spread throughout 48 Indian cities. It plans to open more dark stores in order to expand into new Indian cities and grow its existing community across the country. According to the corporate, the darkish retailer’s common built-up space of 3,100 square feet will be worth INR 58 lakh. In addition, Zomato’s total common operating expenses for running a darkish shop come to INR 12 lakh.

    Zomato plans to spend INR 2,492 Cr on activities related to model construction and promotion. It anticipates spending INR 2,492 Cr on promotional actions by March 31, 2028, at the latest, and intends to increase its advertising expenditures in the near future. 

    Zomato would invest INR 1,769 Cr to build its tech capabilities and cloud infrastructure in order to maintain and upgrade the expertise infrastructure as needed to meet business needs. The remaining funds may be set aside for essential business operations. 

    Zomato Closes Stores in Qatar

    Zomato also disclosed in a change submission that it was closing its operations in Qatar. When Zomato Web LLC (ZIL) submitted its pink herring prospectus (RHP) in July 2021, the company claimed that its step-down subsidiary had no active enterprise operations and was under liquidation.

    According to the RHP, on December 28, 2016, ZIL joined the Qatar Monetary Centre Corporations Registration Workplace as a restricted legal responsibility firm under the Corporations Rules. It worked for a number of knowledge-based businesses, including desk reservations, online restaurant ordering, and commercial enterprises. The closing legal responsibility and amount charged to restate the consolidated monetary claim for ZIL was INR 2.3 Lakh, according to Zomato’s RHP.

    Zomato Investors Approve INR 8,500 Crore QIP Proposal
    Zomato investors have approved a Qualified Institutional Placement (QIP) proposal worth INR 8,500 crore, marking a significant fundraising milestone.
    StartupTalkyNitin Konde

  • Investors in Zomato Accept a QIP Proposal of INR 8,500 Crore

    A month after receiving board permission, foodtech giant Zomato has received shareholder approval to raise INR 8,500 Cr (about $1 billion) through a qualified institutional placement (QIP). The resolution was approved by about 99.79% of the shareholders. This follows the company’s announcement last month of a postal ballot requesting Zomato’s shareholders’ approval.

    Zomato stated in an exchange filing on November 23 that the aforementioned notice was sent electronically on October 23, 2024, to all of the company’s members whose names are listed in the depositories’ register of members/register of beneficial owners as of October 18, 2024 (“Cut-off date”) and whose email addresses are on file with the company.

    The Move is Aligned with the Regulations of Ministry of Corporate Affairs and SEBI

    The business also stated that it complied with Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs rules. In addition, other special resolutions, such as the implementation of multiple ESOPs (2018, 2021, 2022, and 2024) and interest-free loans to the Foodie Bay Employees ESOP Trust, were approved in the scrutiniser’s report, which summarises the results of Zomato‘s postal ballot on November 22.

    According to reports earlier this month, the foodtech company plans to launch its INR 8,500 Cr QIP in December. Morgan Stanley has been chosen as the investment bank for the QIP, and it is still looking to add one or two other investment banks to the fundraise.

    Establishing Fund Raising Committee

    Zomato added that in order to determine the QIP’s structure, issuance method, pricing, discounts, and terms and conditions, the board established a fund-raising committee. Given that its cash reserve dropped to INR 1,726 Cr at the end of the September 2024 quarter due to an INR 2,048 Cr investment for the purchase of Paytm’s entertainment ticketing business, the company is hoping to improve its cash balance with this given the competitive environment and the significantly larger scope of the company’s operations today, the company feels that it needs to improve its cash balance. Deepinder Goyal, the founder and CEO of Zomato, went on to say that the company wants to make sure it is on an even playing field with its rivals, who are constantly raising more money, but it also believes that capital alone does not grant anyone the right to win (and that service quality is the key determinant of success).

    According to Goyal, the business does not intend to use the money for acquisitions or minority investments. For the September quarter of 2024, Zomato’s consolidated net profit increased 389% year over year (YoY) to INR 176 Cr, driven by strong growth in its rapid commerce division, Blinkit. Zomato is anticipated to use the money raised from its QIP fundraising to grow Blinkit’s network of dark stores at a time when competition in the rapid commerce space is getting fiercer. In the meantime, its rivals in the industry have adequate funding as well. After an initial public offering (IPO) valued at more than INR 11,000 Cr, Zomato’s competitor Swiggy, which runs Instamart, went public on November 13. In less than three months earlier this year, Zepto raised almost $1 billion to expand its network.

    Zomato CEO Deepinder Goyal Addresses Odd Employment Offer
    Deepinder Goyal, CEO of Zomato, provides an update on his unusual employment offer, sparking conversations about innovation in hiring practices.
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