Move comes as competition heats up in food delivery and quick commerce market
Bengaluru-based food delivery major Swiggy has received its board’s approval to raise as much as Rs 10,000 crore through a mix of public or private offerings. The company said the capital could be mobilised via qualified institutional placements (QIP) or other permissible routes.
In a filing to the Bombay Stock Exchange (BSE), Swiggy stated that the fundraising will be undertaken in one or more phases, subject to approvals from shareholders and regulators. The company plans to issue equity shares or other eligible instruments as per applicable laws.
The move follows Swiggy’s recent statement that it was exploring additional funding options, citing the dynamic external business environment.
The decision comes amid intensifying competition in both food delivery and quick commerce. Rival Zepto recently raised USD 450 million (around Rs 4,000 crore) at a valuation of USD 7 billion, further consolidating its position in the qcommerce space.
Swiggy, however, maintained that it remains financially strong, with a cash balance of Rs 2,400 crore following the divestment of its stake in bike-taxi platform Rapido.
“However, 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 additional fundraising, which will give us access to sufficient growth capital while enhancing our strategic flexibility,” Swiggy said in a letter to shareholders.
