This will mark the company’s first capital raise since its initial public offering (IPO) in November 2024
Food and grocery delivery company Swiggy has secured the approval of its shareholders to raise Rs 10,000 crore through a qualified institutional placement (QIP), as per a regulatory filing. The shareholders’ nod is an enabling provision for the company’s capital raise plans.
Reports noted that this will mark the company’s first capital raise since its initial public offering (IPO) in November 2024, when it raised around Rs 4,500 crore. The latest fundraising is likely to intensify the competition in the quick-delivery ecosystem as the company is in a direct battle with Blinkit and Zepto.
In an earlier development, Swiggy issued a clarification after a media report suggested that Zepto had gained market share over Swiggy’s Instamart between September and November. The company has called the information ‘baseless and unreliable.
In a clarification submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), Swiggy noted that the article refers to an internal memo from HSBC, which in turn quotes data from Redseer and Zepto.
“We have received a confirmation from Redseer confirming that no data or analysis has been shared by Redseer with HSBC or with the media company in relation to the article. The market share data and view mentioned in the article does not match Redseer’s internal research,” the company noted.
Swiggy’s consolidated loss for the September quarter narrowed sequentially, aided by robust growth in its quick-commerce business, Instamart, even as higher expenses continued to weigh on profitability.
The Bengaluru-based food and grocery delivery company reported a consolidated net loss of Rs 10.92 billion (USD 124.2 million) for the quarter ended 30 September, compared with Rs 11.97 billion in the preceding three months. Year-on-year, however, the loss widened from Rs 6.26 billion.
With the organised segment outpacing the unorganised segment in terms of growth, Swiggy has stated that India’s food services market will cross USD 125 billion by 2030. The organised segment will drive over 60 per cent of the overall growth in food services and overtake the unorganised segment.
Swiggy has released a report titled How India Eats, in partnership with Kearney, and has highlighted that food services present a massive headroom for growth with a contribution of 1.9 per cent to the gross domestic product (GDP) in India, as compared to 5 per cent in China and 6 per cent in Brazil.
