Food delivery major, Zomato, upon discussion among its board members, has decided to raise funds through a qualified institutions placement on October 22nd this year.

Along with that, the decision also entails the announcement of financial results for the second quarter (Q2) of the fiscal year 2024–25 (FY25).

On the same day, the food delivery major’s board is expected to review and approve its statements for the quarter that concluded in September 2024.

The QIP is said to be out on the same day as its significant rival, Swiggy which is also preparing for an IPO.

Once approved, this fundraising could be Zomato’s first one in three years since going public as a major food delivery giant.

The fundraising event is said to come around a time of fierce competition in the fast-food delivery and quick commerce industries.

Zomato said that it plans to allocate the IPO to pool in up to $450 million in new funding.

Zomato has stored up funds of up to Rs 12,539 crore (about $1.5 billion) as of Q1 FY25.

Therefore, its fundraising efforts may be a ploy to throw a wrench in the plans of its rival who is about to go public.

Zomato increased its consolidated earnings from Rs 175 crore in the previous quarter and Rs 2 crore in the same period last year to Rs 253 crore in Q1 FY25.

The company's operating revenue increased 74 percent year over year (Y-o-Y) to Rs 4,206 crore in Q1 from Rs 2,416 crore in Q1.

Its food delivery operation is already profitable, and according to company executives, Blinkit, the company's rapid commerce division, is almost at break-even.

Zepto, a company that facilitates fast commerce, is aiming to raise between $100 and $150 million, having already raised more than $1.2 billion in the previous 14 months.