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Swiggy will play the long game, focussing on growth and profitability, founder and group CEO Sriharsha Majety said during the company’s post-earnings call, as competition intensifies in the segment.Majety replied to a query in the analysts' call, which cited rival Zepto’s claims to have crossed two million daily orders during the Diwali period.“Chasing volume growth at the cost of poor average order values and weak contribution margins is a choice — but not one we want to make,” Majety said, without naming any company, adding that it is easy to see the numbers of listed players but difficult to see the numbers of private players.“In the long run, we are playing to win, and that requires staying power. You can only have that staying power if a category consistently makes progress on contribution,” Majety said on the call.Food and grocery delivery platform Swiggy’s net losses for the June to September quarter have gone up 74.4% to Rs 1,091 crore from Rs 626 crore reported last year for the same period. Meanwhile, its operating revenue rose 54% year-on-year (YoY) to Rs 5,561 crore in Q2 of FY26 from Rs 3,601 crore.It also said on Thursday that its board will meet on November 7 to consider a Rs 10,000 crore ($1.1 billion) fundraise through a qualified institutional placement (QIP), according to a filing with the exchanges.ET reported in its Thursday edition that the Bengaluru-based company was exploring a QIP of around $1–1.5 billion to strengthen its balance sheet.In a letter to shareholders, Swiggy said that while it remains “well-funded” for its growth plans, “the external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector.”Competition intensifiesAs of September 30, Swiggy had Rs 4,605 crore in cash — after burning Rs 749 crore during the July-September period. The cash burn fell from Rs 1,341 crore in the April-June quarter.Also Read: Quick commerce companies slow dark stores buildout to control cash burnMeanwhile, rival Eternal has Rs 18,314 crore in its bank as of September 30, according to the company’s Q2 results. Zepto, on the other hand, has recently closed a $450 million round in a mix of primary and secondary transactions.Founder Adit Palicha told ET in an interview that the firm plans to invest the proceeds in growth, adding a “few hundred” dark stores, and focus on volume expansion over the next 12 months.Also Read: ETtech Explainer: Why Zepto founders are taking personal debt to boost Indian ownershipThis is likely to increase competition and intensify cash burn in the industry, as platforms focus on expanding and discounting, according to analysts.As quick commerce players are raising money, experts say that discounting will increase in the coming months, along with rapid expansion.Market leader Blinkit has 1,816 dark stores as of the September quarter, with plans to touch 3,000 by March 2026. Instamart had 1,102 dark stores until September.Also Read: ETtech Explainer: Swiggy's losses balloon despite push to improve economics
