Swiggy has secured shareholder approval to raise Rs 10,000 crore through a qualified institutional placement, setting the stage for its largest capital infusion since going public last year. A regulatory filing on Monday confirmed the nod, which acts as a green signal for the company to move ahead with the fundraising exercise that could open as early as this week, according to people familiar with the matter.
The food and grocery delivery firm has shortlisted the Indian arms of Citigroup, JPMorgan and Kotak Mahindra Capital to manage the placement. Market participants expect the issue to be priced at a discount to Swiggy’s prevailing stock price, a common practice in QIPs. Shares closed at Rs 385.85 on the BSE, slipping 2.1 percent after the disclosure. At current levels, the proposed fundraise would dilute more than a tenth of the company’s equity.
This will be Swiggy’s first major capital raise since its November 2024 listing, where it raised Rs 4,500 crore. By the September quarter, the company had already used over four-fifths of that amount. Most of the spending was linked to losses in Instamart, its quick commerce arm, which has been expanding at a pace faster than internal projections.
The fresh funding comes at a time when competition in the 10-minute delivery market is intensifying. Blinkit, owned by Eternal, and Zepto, backed by Nexus Venture Partners and preparing to file draft papers by mid-December, are expected to accelerate expansion. Swiggy’s consolidated cash burn stood at Rs 740 crore in the September quarter, ahead of Eternal’s Rs 543 crore.
In a recent communication to shareholders, Swiggy said the company wants additional financial headroom to strengthen its market position as store networks mature and operating leverage improves. The firm also highlighted the Rs 2,400 crore it will receive from its Rapido divestment as part of its broader balance sheet strategy.
