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Swiggy said in a regulatory filing on November 7 that it has approved plans to raise up to Rs 10,000 crore through one or more rounds of public or private share offerings, including a Qualified Institutional Placement (QIP), after getting the required approvals. In a letter to shareholders dated October 30, Swiggy, bolstered by a Rs 2,400-crore exit from Rapido, noted: “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.” The move comes as competition in India’s quick commerce market heats up, with rivals like Zepto and Blinkit recently raising large funds and expanding fast. Swiggy’s fundraising has been seen as a way to strengthen its cash reserves to scale up and better handle price cuts and shrinking profit margins. Swiggy’s move reflects a wider industry shift. While food delivery continues to grow steadily, profits now depend more on faster deliveries, small local warehouses, and frequent orders. The new fundraising shows the company’s plans to expand while also strengthening its operations to meet changing investor expectations. While shareholders still need to approve the fundraise and final tranches are subject to market conditions and regulatory sign-offs, the board’s nod has already injected momentum into Swiggy’s strategy to position itself as better-capitalised, growth-ready and structurally more agile in the face of India’s fast-shifting digital commerce landscape. (With inputs from PTI)
