Food and grocery delivery platform Swiggy said it will consider raising up to Rs 10,000 crore through a qualified institutional placement (QIP) and other permitted modes, as the company looks to strengthen its balance sheet and maintain flexibility amid rising competition in India’s quick commerce market.
In a filing dated October 30, Swiggy said a meeting of its board of directors will be held on November 7, 2025, to consider and approve the fundraising proposal, which may be carried out in one or more tranches, subject to shareholder and regulatory approvals.
“The Board of Directors of the Company is scheduled to be held on Friday, November 7, 2025, to, inter-alia, consider and approve the raising of funds by way of public or private offerings, including through one or more qualified institutions placement or any other permitted modes under applicable laws, for equity shares/securities to eligible investors, not exceeding INR 10,000 crore, in one or more tranches,” the company said in the filing.
Why now?
The proposed fundraise comes as India’s quick commerce market enters a renewed phase of expansion and capital deployment. Zepto recently raised $450 million at a $7 billion valuation, while Eternal-owned Blinkit has announced plans to nearly double its dark-store network to 3,000 by March 2027.
Notably, Swiggy's rival Eternal had, in November last year, also raised Rs 8,500 crore via a QIP to strengthen its balance sheet and fund Blinkit’s expansion.
Swiggy’s Instamart business has also been investing in promotions and customer incentives to retain users, even as Reliance JioMart, Flipkart, and Amazon expand their presence in rapid-delivery services, Moneycontrol reported earlier.
In its Q2 FY26 shareholder letter, Swiggy said it had been investing in quick commerce at an accelerated pace over the past year as the category grew faster than expected, driving it to front-load its planned investments.
“With the store network maturing and hyper-growth accruing significant operating leverage in the business, the segment is well poised to capture the market opportunity while continuing to deliver on the underlying financial metrics,” the company said.
It added that increasing profitability in the food delivery business continues to contribute to cash reserves, and the company remains well-funded for growth. The management also noted that Swiggy’s balance sheet has been further strengthened by the Rs 2,400-crore divestment of its stake in Rapido.
However, the company acknowledged that the competitive landscape is evolving quickly, with both established and new players attracting significant investor interest.
“The external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector,” it said. “This has necessitated a conversation with the Board to consider an additional fund raise which will give us access to sufficient growth capital while enhancing our strategic flexibility.”
How will the funds be used?
While Swiggy has not provided a detailed breakdown of utilisation, the proceeds are expected to support growth investments in quick commerce, technology upgrades, and delivery-network expansion. The company said maintaining a strong balance sheet would allow it to pursue long-term opportunities as market conditions evolve.
The fundraise is also expected to give Swiggy greater capacity to defend share in the increasingly crowded quick commerce category and to invest in customer acquisition, logistics efficiency, and category depth through Instamart.
What’s next for Swiggy?
Swiggy’s board will take up the proposal on November 7, following which the company will seek shareholder and regulatory clearances.
If approved, the transaction would be among the largest fundraises by an Indian internet company in 2025, strengthening Swiggy’s capital position ahead of a potential public listing.
The company said the proposed QIP would ensure “access to sufficient growth capital while enhancing strategic flexibility” as it continues to scale operations and compete in one of India’s fastest-growing consumer internet categories.
How did Swiggy perform in Q2 FY26?
Swiggy on October 30 reported that its net loss widened 74.4 percent year-on-year (YoY) to Rs 1,092 crore in the second quarter (Q2) of financial year 2025-26 (FY26), up from Rs 626 crore in the same period a year ago.
The Bengaluru-based firm had reported a loss of Rs 1,197 crore in the previous quarter, as rapid expansion in its quick commerce vertical Instamart took a toll on the company’s bottom line.
Swiggy’s revenue from operations rose 54.4 percent YoY to Rs 5,561 crore in Q2, up from Rs 3,601 crore a year ago. It had reported a revenue of Rs 4,961 crore in the previous quarter.
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