Eternal Ltd Confirms QIP Fund Use, Meets Objectives

Eternal Ltd, formerly known as Zomato, has confirmed the utilization of its Qualified Institutions Placement (QIP) funds as planned. An ICRA monitoring agency report shows that by March 31, 2026, the company had deployed ₹5,599.08 crore of the ₹8,500 crore raised through the QIP, with no deviation from the stated objectives.

QIP Deployment Details

The ICRA report confirms ₹5,599.08 crore of the ₹8,500 crore QIP has been deployed as of March 31, 2026. This leaves ₹2,837.04 crore unutilized, earmarked for future strategic needs.

Specific allocations included:

• Dark Stores/warehouses: Fully utilized
• Advertising/Branding: ₹1,432.53 crore utilized
• Technology Infrastructure: ₹697.46 crore utilized
• General Corporate Purposes: ₹1,332.09 crore utilized

Strategic Objectives and Fund Allocation

The QIP, which took place between November 25-28, 2024, was a significant capital raise designed to strengthen Eternal Ltd's financial position and fund its growth initiatives. The primary objectives included expanding its quick commerce arm, Blinkit, and investing in advertising, marketing, and branding. Initial allocations were approximately ₹2,137 crore for dark stores/warehouses and ₹2,492 crore for advertising and branding, alongside funds for technology and general corporate purposes.

Investor Confidence and Future Flexibility

For investors, the confirmation that QIP funds are being used according to the original plan provides reassurance about the company's financial discipline and adherence to its strategic roadmap. This transparency in fund management builds confidence, especially given the substantial capital involved.

Sector Competition and Risks

Eternal Ltd operates in a highly competitive market. Its primary rivals in food delivery and quick commerce include Swiggy and Zepto. Swiggy also runs an instant grocery service (Swiggy Instamart) and a hyperlocal courier service, while Zepto focuses on quick commerce and has also been raising significant capital. These companies are engaged in an intense battle for market share, which drives substantial capital deployment.

Risks in the sector include sustained high cash burn from rapid, loss-making expansion, particularly for Blinkit, and potential regulatory oversight in the quick commerce space.

Key Figures and Outlook

• QIP Size: ₹8,500.00 crore
• Funds Utilized (as of March 31, 2026): ₹5,599.08 crore
• Funds Unutilized (as of March 31, 2026): ₹2,837.04 crore
• QIP Issue Period: November 25-28, 2024

Investors will be monitoring further updates from ICRA on the deployment of the remaining funds. Key areas to watch include Blinkit's continued progress and its path toward profitability, how Eternal Ltd maintains its market position against well-funded rivals, and the company's overall future profitability trajectory.