Swiggy board okays plan to raise ₹10K cr via public, private offers

Swiggy's board has cleared a proposal to raise up to Rs 10,000 crore through QIP and other routes to fund growth in its quick commerce business and strengthen financial reserves

Swiggy, a platform for delivering food and groceries, on Friday said the company’s board had given the nod to raise ₹10,000 crore via public or private offers, including qualified institutional placement (QIP).

 

The company is raising capital to expand its operations in quick commerce (qcom) while strengthening its balance sheet.

 

In a stock-exchange filing, Swiggy said its board had “considered and approved the raising of funds by way of public or private offerings including, through one or more tranches, by way of QIP or any other permitted modes under applicable laws of equity shares or through any other permissible mode to the eligible investors as may be permitted, for an aggregate amount of up to ₹10,000 crore”. 

 

QIP is a capital-raising tool that allows listed companies to raise capital from qualified institutional buyers such as mutual funds and insurance companies. This is done by issuing fresh shares.

 

The development comes after the company last week said it was considering additional fundraising due to rising competition in qcom. 

 

During the analysts’ call, while sharing the results for the second quarter this financial year (Q2FY26), the company’s chief financial officer, Rahul Bothra, said that given the fact that the sector was witnessing continued investment, the new fundraise would be used as growth capital.

 

“This (qcom) sector has continued to attract a lot of investment. Both new and legacy players are growing and getting investment. So, this is a conversation we want to have with the board to be able to raise this additional capital, which would be more towards growth as well as strategic reserves that we want to use on a going-forward basis,” Bothra said, adding that the company did not expect to raise any further capital after QIP.

 

Swiggy’s fundraising has come at a time when rivals in the instant-grocery space, like Zepto and Blinkit, are expanding and raising capital.

 

For instance, Zepto last month announced the closure of an approximately $450 million round at a valuation of $7 billion. 

 

Blinkit also is aiming to expand its network to 3,000 dark stores by March 2027. Simultaneously, comparatively new players in the qcom market, like Amazon Now, JioMart, Flipkart Minutes, and BigBasket, are also making plans to expand their businesses.

 

In September this year, Swiggy sold its entire stake in ride-hailing platform Rapido (which too has entered food delivery) for about ₹2,400 crore. The stake sale, which is expected this quarter, will further strengthen the company’s cash reserves.

 

Swiggy had posted a consolidated net loss of ₹1,092 crore in Q2FY26 as against a loss of ₹626 crore a year earlier.

 

Despite this, the company recorded strong top line growth, with revenue from operations rising 54.42 per cent year-on-year to ₹5,561 crore during the quarter under review, reflecting expansion in food and groceries.