Zomato, the popular food delivery and restaurant aggregation giant, saw its shares rise by 1% on Monday morning, ahead of its eagerly awaited Q3 FY25 results. Despite recent fluctuations, Zomato has gained over 90% in the last 12 months. Here’s everything you need to know.
1. Zomato’s Stock Climbs Back After Recent Slump
Zomato’s stock price had been experiencing a downturn in the past month, shedding nearly 12%. However, it seems to be bouncing back with a modest gain of 1% as it reached ₹251.40 on the National Stock Exchange (NSE) in the morning session of January 20, 2025. This recovery is a welcome sign for investors who have seen a 91% surge in the company’s stock value over the last year.
Even though its stock price has dipped in recent days, the long-term outlook for Zomato remains positive, largely driven by its aggressive growth strategy and investments. As the company gears up to release its Q3 results, all eyes are on the numbers that could either solidify or shake investor confidence.
2. Zomato’s ₹500 Crore Infusion into Blinkit
In an interesting move last week, Zomato injected ₹500 crore into its quick commerce arm Blinkit. This fund infusion comes as Blinkit continues to lead in the rapidly growing quick commerce market. The fresh capital was reported in a filing with the Registrar of Companies (RoC) and highlights Zomato’s ongoing commitment to strengthening its portfolio.
The capital infusion was made via the issuance of 2,537 equity shares at a price of ₹19.7 million each. With this addition, Zomato’s total investment in Blinkit stands at around ₹2,800 crore. Zomato’s support is crucial for Blinkit’s continued operations and expansion, as the quick commerce sector continues to gain traction in India.
- Zomato’s investment in Blinkit now totals ₹2,800 crore.
- This is part of Zomato’s strategy to dominate multiple sectors of food services and quick commerce.
3. A Major Fundraising Push: Zomato Raises ₹8,500 Crore
Back in November 2024, Zomato raised ₹8,500 crore by selling equity shares to qualified institutional investors. This fundraising came at a critical time when Zomato aimed to strengthen its balance sheet, preparing for further expansion and financial stability.
Zomato CEO Deepinder Goyal confirmed that this fundraise would help the company achieve its growth objectives. The allotment of shares was done at a price of ₹252.62 per share, which was a 5% discount on the floor price. This move was seen as an effort by Zomato to solidify its position in a competitive market while managing its long-term debt.
The fresh funds are expected to help Zomato focus on its growth trajectory while also bolstering its various business verticals, including food delivery and quick commerce. Investors will likely be keeping a close eye on how Zomato uses this capital to fuel its next phase of growth.
4. Blinkit’s Market Leadership
Zomato’s continued backing of Blinkit has strengthened its position in the Indian quick commerce industry. The market for ultra-fast grocery and food deliveries has exploded, with companies like Blinkit leading the charge.
The food and grocery delivery platform, formerly known as Grofers, was acquired by Zomato to diversify its portfolio and stay competitive. Blinkit’s rapid delivery model, which promises delivery in minutes, has become a hit among urban consumers.
As of now, Blinkit remains a market leader, and with Zomato’s continued investment, it’s expected that Blinkit will scale new heights in 2025. This aggressive strategy is not only about staying ahead of the competition but also increasing the overall customer base of Zomato’s ecosystem.
5. The Path Forward: What’s Next for Zomato?
Looking ahead, Zomato is focusing on strengthening its services in both food delivery and quick commerce. The company’s latest fundraising initiatives and strategic investments indicate a shift towards ensuring growth across multiple avenues.
Zomato’s Q3 FY25 results, which are due shortly, will likely provide insights into how these investments are paying off. Investors will be particularly keen on seeing the performance of Blinkit and whether Zomato’s food delivery segment can maintain its momentum.
Given the recent uptick in its stock and the massive capital infusions, Zomato seems well-positioned to handle the challenges of 2025. However, as with any tech-driven company, how well it adapts to market changes will determine whether the stock can continue its upward trajectory.
