Swiggy’s Board Approves INR 10,000 Cr Fundraise

SUMMARY

Swiggy’s board has approved the company’s plan to raise INR 10,000 Cr (about $1.1 Bn) in funding via a mix of public or private market issuances

The fundraise may be carried out in one or more tranches, including via a qualified institutions placement (QIP) or any other method allowed under Indian regulations

Swiggy’s fundraise plan is yet to be approved by its shareholders. The company would be conducting an EGM to seek shareholder approval soon.

Swiggy’s board has approved plans to raise INR 10,000 Cr (about $1.1 Bn) through a mix of public or private market issuances. The fundraise, which may be executed in multiple tranches, could include a qualified institutional placement (QIP) or any other route permitted under Indian regulations.

The proposal now awaits shareholder approval, with the company expected to call an extraordinary general meeting (EGM) soon. While the exact timeline remains unclear, the fresh capital would further strengthen Swiggy’s balance sheet. The company is also set to receive INR 2,400 Cr from the sale of its stake in Rapido, taking its total cash reserves to around INR 7,000 Cr.

The announcement came alongside Swiggy’s Q2 FY26 financial results on October 30. During the quarter, the company’s net loss narrowed 74% YoY to INR 1,092 Cr, while operating revenue surged 54% YoY to INR 5,561 Cr.

Instamart, Swiggy’s quick commerce arm, continued to weigh on the company’s bottom line, with losses more than doubling to INR 739 Cr. Even so, Instamart’s contribution to overall revenue rose to 18% in Q2 FY26, up from 13% a year earlier, underscoring the growing significance of quick commerce within Swiggy’s portfolio.

Given Instamart’s growth potential, Swiggy is expected to allocate a significant portion of the new funds toward scaling the vertical and strengthening its long-term strategy. In its Q2 letter, the company said that rising competition and fresh capital inflows across the sector made it necessary to explore a larger raise to maintain strategic flexibility.

As part of its restructuring, Swiggy has also hived off Instamart into a wholly owned step-down subsidiary. The company plans to transition from a marketplace model to an inventory-led structure, a move that would require increasing its domestic shareholding in line with FDI norms. The proposed QIP is expected to support this shift.

Swiggy’s fundraising push comes amid intensifying rivalry in the quick commerce space. Zepto recently raised $450 Mn in mainly primary funding to expand its network, while Eternal plans to scale its dark store network to 2,100 by December 2025, up from its earlier goal of 2,000.

Commenting on the competitive landscape, Swiggy CEO Sriharsha Majety said during the earnings call that competition intensity remains unchanged and is unlikely to ease anytime soon.

Shares of Swiggy closed 0.59% lower at INR 401.6 on BSE today.