Swiggy has received shareholder approval to raise ₹10,000 crore through a Qualified Institutional Placement (QIP), marking the company’s first major fundraise since its public listing in 2024. The company is preparing to initiate the capital raise shortly.
Details of the Capital Raise
| Item | Information |
| Fundraising Method | Qualified Institutional Placement (QIP) |
| Fund Size Approved | ₹10,000 crore |
| Timing | Expected to begin soon |
| Last Major Fundraise | IPO in November 2024 (₹4,500 crore raised) |
QIPs are typically priced below the prevailing market value, and based on current estimates, the issuance may lead to shareholding dilution exceeding 10%.
Use of Previous and Planned Funding
Swiggy has utilized more than 80% of the capital raised during its IPO. The company indicated that much of the deployed funds were allocated to its quick commerce business, Instamart.
With competition intensifying in the sector, Swiggy plans to use the proposed QIP proceeds to support:
- Business expansion efforts
- Investments in quick commerce
- Operational funding needs
- Balance sheet flexibility
Operational and Industry Context
Swiggy continues to scale its operations in a competitive market where rivals such as Blinkit and Zepto are also expanding.
Recent Cash Burn (September Quarter)
| Company | Estimated Cash Burn |
| Swiggy | ₹740 crore |
| Blinkit (Eternal-owned) | ₹543 crore |
The figures include treasury income and profit generated from Swiggy’s core food delivery business.
Company Rationale for Fundraising
Swiggy stated that investments in Instamart were accelerated as the quick commerce category grew faster than initially projected. The company highlighted improvements in operational efficiency and store network maturity.
Swiggy also expects a ₹2,400 crore inflow from its divestment of Rapido, contributing additional liquidity.
Swiggy noted that market conditions continue to shift and the proposed capital raise is intended to support ongoing financial and operational requirements.
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