Bengaluru-based food and grocery delivery major Swiggy will convene its board on November 7 to discuss a proposal to raise Rs 10,000 crore ($1.1 billion) through a qualified institutional placement (QIP). The company said the move is intended to boost strategic flexibility and strengthen its balance sheet at a time when competition in the food and quick commerce sector is intensifying.
The proposed fundraise comes even as Swiggy remains “well-funded” for its current growth plans. In a filing, the company said, “The external environment is dynamic, with both established and new players attracting large investments. This has prompted the board to consider an additional capital raise to ensure we remain agile and well-capitalized.”
Swiggy reported a net loss of Rs 1,092 crore in the September quarter, widening from Rs 626 crore a year earlier, despite a 54% year-on-year rise in operating revenue to Rs 5,561 crore, largely driven by its quick commerce vertical, Instamart. The firm’s EBITDA loss narrowed sequentially to Rs 695 crore from Rs 813 crore in the previous quarter.
As of September 30, the company had Rs 4,605 crore in cash reserves, with quarterly cash burn reducing to Rs 749 crore, down from Rs 1,341 crore in the previous period. The balance sheet will receive an additional boost from the Rs 2,400 crore divestment of its 12% stake in Rapido to Prosus and WestBridge Capital.
Swiggy’s quick commerce arm, Instamart, maintained strong momentum with gross sales of Rs 7,022 crore, clocking over 100% growth for the third straight quarter. The food delivery business also expanded 18.7% year-on-year to Rs 8,542 crore.
Chief Financial Officer Rahul Bothra said the QIP proceeds will serve as growth capital, adding that no further fundraising is anticipated after this round.
