Swiggy has engaged three advisors for its proposed big-bang fund raise of up to Rs 10,000 crore via the QIP ( qualified institutional placement) route as the food and grocery delivery major looks to mop up growth capital amid an intense quick- delivery price war with rivals Blinkint and Zepto, multiple industry sources in the know told Moneycontrol on the condition of anonymity.
" JP Morgan , Kotak Mahindra Capital and Citi have been onboarded recently for the capital raise," said one of the persons above. Two other persons confirmed the same and added that the timeline for the QIP launch was immediately unclear.
Email queries sent to Swiggy remained unanswered at the time of publishing this article. Reminders have been sent and this article will be updated as soon as we hear from the firm.
When contacted, JP Morgan, Kotak Mahindra Capital and Citi declined to comment. On November 7, the board of directors of Swiggy gave the nod for raising of funds via the QIP route for an aggregate amount of up to Rs 10,000 crore subject to shareholder and regulatory approvals. The firm's share price has seen a rise of 21.45 per cent in the last six months, followed by a dip in recent weeks.
The Swiggy Strategy
During its Q2FY26 earnings call held a day before the board meeting, the firm's management, which has guided to hit contribution margin profitability by the June 2026 quarter, indicated that the proceeds from the proposed QIP would be used for strategic reserves and " innovation capital".
"The food delivery business continues to accrue cash reserves positively. With the Rapido stake sale, which we are expecting in this quarter, the cash proceeds to come in, we anyway sit on a very strong balance sheet. So, this additional fundraise, as I said, is going to be used more towards growth capital," Rahul Bothra, CFO, Swiggy told analysts during the call.
Bothra elaborated, "We are also a very innovative company. We have been pioneers of launching the services, whether it's food delivery or quick commerce and continue to experiment on the side to need some of the innovation capital going forward for some of the new experiments that we do. So, this will definitely bolster our overall cash results and put us in a very, very healthy position. We don't expect the need to raise any further capital if and when we were to raise this additional QIP."
The Rapido Stake Sale
The firm shared that post IPO, most of its investments have been targeted at the quick commerce business, which saw a third continuous quarter of 100 per cent plus GOV ( gross order value) growth, which far exceeded internal projections.
Swiggy will divest its entire 12 percent stake in Rapido to Prosus and Westbridge Capital, both existing investors in the ride-hailing startup, for a total of Rs 2,399 crore, the company disclosed to the bourses on September 23.
On August 6, Moneycontrol was the first to report that Swiggy is planning to sell its stake in Rapido and could mop up as much as Rs 2,500 crore through the deal.
On October 30, Swiggy reported that its net loss widened 74.4 percent year-on-year (YoY) to Rs 1,092 crore in Q2FY26, up from Rs 626 crore in the same period a year ago. However, revenue from operations increased to Rs 5,561 crore from Rs 3,601 crore a year ago.
On the other hand, key listed rival Zomato saw a 63 percent YoY dip in quarterly profit at Rs 65 crore in the September quarter, while revenue rose 183 percent YoY to Rs 13,590 crore, as Blinkit switched to an inventory ownership model.
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