Indian food delivery major Swiggy Ltd. is preparing to raise up to Rs 10,000 crore from institutional investors as early as next week through a qualified institutional placement (QIP), according to people familiar with the matter. The company has shortlisted Citigroup India, JPMorgan India, and Kotak Mahindra Capital to manage the share sale.
The move is part of Swiggy’s broader strategy to strengthen its cash reserves and accelerate expansion across food delivery and quick commerce, where competition has intensified sharply in recent months. The company’s board first approved the fundraising plan in early November 2025, allowing Swiggy to raise capital through QIP and other permitted channels, subject to shareholder and regulatory approvals.
Funds from the placement are expected to support multiple priorities. Swiggy plans to expand its quick commerce infrastructure, including dark stores and local warehouses, invest in technology and cloud systems, enhance customer acquisition, and step up brand marketing efforts. The capital will also be used for repaying or pre-paying borrowings and potentially pursuing strategic acquisitions. These steps aim to consolidate Swiggy’s position amid rapid sector growth and mounting competition from players such as Zomato’s Blinkit and Zepto.
The timing coincides with significant funding activity in the instant commerce space. Zepto recently raised $450 million at a valuation of $7 billion, while Blinkit is targeting a dark store network of 3,000 outlets by March 2027. Analysts say these developments have created an environment where deep capital reserves are increasingly essential for companies seeking to scale quickly and maintain market share.
Swiggy co-founder and CEO Sriharsha Majety has emphasized the importance of long-term growth investments and infrastructure development as key to staying competitive. By bolstering financial resources through the QIP, Swiggy looks to reinforce its leadership in India’s fast-evolving food delivery and instant commerce sector.
