Swiggy Approves ₹10,000 Crore Fundraise via QIP

Indian online food and grocery delivery platform Swiggy has announced that its board has approved plans to raise up to ₹10,000 crore (approximately $1.14 billion) through a qualified institutional placement (QIP). The decision, made on Friday, November 7, 2025, aims to bolster the company's capital reserves and fuel future growth initiatives.

A QIP is a fundraising tool used by listed companies to raise capital from qualified institutional buyers (QIBs) such as mutual funds and insurance companies, without the need to submit preliminary placement documents to regulatory bodies.

Swiggy's decision to pursue a QIP comes at a time when the food and quick commerce delivery space in India is experiencing intense competition. Swiggy and its rivals, including Zomato's Blinkit and Zepto, have been investing heavily in expanding their warehouse networks and customer acquisition strategies in an effort to gain market share.

According to sources, the fundraise will not only strengthen Swiggy's cash reserves but also support "new experiments" within the quick commerce and food delivery sectors. This move indicates Swiggy's intent to remain competitive and explore innovative approaches to capture a larger share of the rapidly expanding market.

The company had previously signaled its intention to explore various funding options, including a potential QIP, public or private offerings, or other methods permitted under applicable regulations. The fundraising may be carried out in multiple tranches, pending necessary regulatory and shareholder approvals.

In related news, Swiggy divested its entire stake in ride-hailing platform Rapido in September 2025 for approximately $270 million (around ₹2,400 crore), further solidifying its financial position. The company has also reportedly slowed down its warehouse expansion efforts to improve its margins.

Swiggy's financial performance in the recent quarter reveals a mixed picture. While revenue from operations saw a significant jump of 54.4% year-on-year to ₹5,561 crore, the company's net loss widened by 74.4% to ₹1,092 crore. The increased losses were attributed to accelerated expansion in its quick-commerce arm, Instamart. However, Instamart has made strides toward profitability, improving its contribution margins. Swiggy is aiming for contribution margin profitability in quick commerce by June 2026.

Despite the increasing losses, Swiggy's quick commerce segment has demonstrated strong growth, with revenue doubling year-over-year. The company has also implemented strategic initiatives to boost its quick commerce business, including the "Quick India Movement" sale event and a separate app for Instamart.

The proposed QIP is viewed as a strategic move to build a robust financial foundation amid increasing competition. The raised capital is expected to provide Swiggy with the resources to maintain its competitive positioning and capitalize on the growing demand for quick and convenient delivery services across a wider range of product categories.

Following the announcement, Swiggy shares experienced a decline in early trade, dropping as much as 2.07% on the BSE.