Swiggy Plans ₹10,000 Crore Fundraising
Swiggy, one of India's foremost food delivery platforms, has announced its intent to raise up to Rs 10,000 crore. This decision comes as the company looks to bolster its financial health and enhance its competitive edge in the rapidly evolving food delivery and quick commerce sectors. The approved proposal allows for fundraising through public or private offerings, including a Qualified Institutional Placement (QIP), which will require shareholder and regulatory approvals before proceeding.
The necessity for this fundraising stems from the fierce competition in the industry, particularly with rival firms like Zepto recently raising substantial capital. Zepto secured $450 million, equivalent to approximately Rs 4,000 crore, which significantly strengthens its market positioning. In the face of such competition, Swiggy aims to ensure it maintains a solid footing in the market.
Swiggy's current financial standing is relatively stable, with a reported cash balance of Rs 2,400 crore following the sale of its stake in the bike-taxi service Rapido earlier this year. However, the company has faced challenges, as indicated by its widening losses. For the September quarter, Swiggy recorded a consolidated net loss of Rs 1,092 crore, a notable increase from the Rs 626 crore loss reported in the same quarter the previous year.
Despite these losses, Swiggy has shown impressive revenue growth. The company's consolidated revenue for the second quarter of FY26 reached Rs 5,561 crore, marking a significant year-on-year increase of 54.4% from Rs 3,601 crore. This growth in revenue highlights the strong demand for Swiggy's services, even as the company navigates operational challenges.
The proposed fundraising is a strategic move aimed at providing Swiggy with added financial flexibility. It will enable the company to continue expanding its market share in both food delivery and quick commerce sectors, while also preparing for a potential public listing in the future. As the industry landscape continues to change, Swiggy's proactive approach in securing funds reflects its commitment to sustaining growth and competitiveness.
