[Update] Swiggy Mulls Raising INR 10,000 Cr Via QIP

Update | October 30, 16:30 IST

Foodtech major Swiggy is planning to raise up to INR 10,000 Cr via a qualified institutional placement (QIP) for the expansion of its quick commerce vertical Instamart.

In an exchange filing, the company said that its board will meet on November 7 to consider and approve a fundraise of up to INR 10,000 Cr via public or private offerings, including through one or more QIP or other modes. 

“… the external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector. This has necessitated a conversation with the board to consider an additional fund raise which will give us access to sufficient growth capital while enhancing our strategic flexibility,” the company said in its Q2 shareholders’ letter.

Including the INR 2,400 Cr which Swiggy will get from its stake sale in Rapido, the company said its cash balance stood at about INR 7,000 Cr at the end of Q2 FY26.

The company today reported a 74.4% YoY increase in its consolidated net profit to INR 1,092 Cr in Q2 FY26. Operating revenue zoomed 54% YoY to INR 5,561 Cr during the quarter.

Original | October 30, 11:18 IST

Foodtech giant Swiggy is reportedly considering raising $1 Bn to $1.5 Bn via a qualified institutional placement (QIP) to boost its balance sheet and accelerate quick commerce expansion.

Citing sources, ET reported that Swiggy is in early-stage discussions with investors for the QIP.

The QIP will also help the company increase its domestic shareholding as it mulls transitioning Swiggy Instamart to an inventory-led model, like Eternal did with its quick commerce vertical Blinkit, the report added.

Blinkit transitioned 80% of its NOV to own-inventory model during Q2 FY26, barring a few categories. As a result of the transition, its Q2 revenue zoomed 8.5X YoY to INR 9,891 Cr. Meanwhile, its adjusted EBITDA loss declined 4% YoY to INR 156 Cr in the quarter.

In the case of Swiggy, the company recently hived off Instamart into a separate, step-down subsidiary. Back in September, its board approved a proposal to transfer all of Instamart’s assets, liabilities, employees, permits, contracts and intellectual property to Swiggy Instamart Private Limited, its indirect step-down, wholly owned subsidiary.

Analysts Inc42 spoke with shortly after the hive off pointed out that the quick commerce entity could likely pivot to an inventory-led model from the marketplace structure, where brands are listing their products on Instamart’s application.

As per brokerage firm Nomura, switching to an inventory-led model could help Swiggy improve the contribution margin of the business. 

To enable that transition, Swiggy would need to bolster its domestic shareholding as Indian foreign direct investment (FDI) regulations prohibit foreign-funded marketplaces from owning inventory or exerting control over sellers.

“Swiggy needs to raise domestic capital to increase its Indian shareholding. It can either be primary or secondary,” an industry insider told Inc42 earlier in September.

Inc42 has reached out to Swiggy for comments on the development. The story will be updated on receiving responses.

The development comes at a time when the quick commerce segment continues to see intense competition. Earlier this month, Zepto raised $450 Mn, largely in primary capital, to accelerate its network expansion. Meanwhile, Eternal said in its Q2 shareholders’ letter that it expects its dark store count to grow to 2,100 by December 2025 as against its earlier target of 2,000 stores.

Notably, Swiggy is set to release its financial numbers for Q2 FY26 today. In Q1, Swiggy’s net loss skyrocketed 96% to INR 1,197 Cr from INR 611 Cr in the year-ago quarter. Operating revenue surged 54% to INR 4,961 Cr from INR 3,222 Cr in Q1 FY25.  

Out of the total loss for the quarter, Instamart accounted for INR 797 Cr in Q1 FY26, almost 3X of INR 280 Cr loss in the year-ago quarter. However, the quick commerce arm also recorded a 2X  jump in its revenue to INR 806 Cr from INR 374 Cr in Q1 FY25. 

Besides quick commerce, the company is also weighing its priority when it comes to other business segments. For instance, Swiggy is in the process of shutting its marketplace for professional services Pyng, which started its operations in January this year . Besides, it has also pulled the plug on other businesses like Genie and Swiggy Minis this year. 

Shares of Swiggy were trading 0.27% lower at INR 417.80 on the BSE at 14:04 IST.