Swiggy: Online food delivery platform Swiggy is preparing to raise Rs 10,000 crore. For this the company will take the route of Qualified Institutional Placement (QIP). Swiggy is going to raise Rs 10,000 crore ($1.1 billion) from institutional investors by next week.
A source, speaking on condition of anonymity, said the company has shortlisted three banks to manage the share sale – Citigroup Inc. and the Indian units of JPMorgan Chase & Co. and Kotak Mahindra Capital Company. The board had also on November 7 approved a plan to raise up to Rs 10,000 crore through qualified institutional placement, which is still pending shareholder and regulatory approval. The timing and size of the deal may still change.
Company suffered losses in the second quarter
Swiggy suffered a loss of Rs 1092 crore in the September quarter of financial year 2025, which was much more than the loss of Rs 626 crore a year earlier. However, during this period, the company’s operational revenue had increased from Rs 3601 crore in the same quarter last year to Rs 5561 crore. In the month of September itself, Swiggy approved the sale of its entire stake in bike-taxi service provider Rapido. This deal was done for about Rs 2400 crore.
Sold my share in Rapido
Three years ago in April 2022, 12% stake was purchased in Rapido for about Rs 1000 crore. Last month, Nuvama Institutional Equities had said that about Rs 7,000 crore in cash had strengthened Swiggy’s financial position. This also includes the amount received from the stake sold in Rapido. The company is now planning to raise up to Rs 10,000 crore through qualified institutional placement.
Swiggy follows the path of Zomato
Zomato had also raised funds of Rs 8500 crore through qualified institutional placement last year. The company said the reason behind this was to increase its cash reserves. Now Swiggy is also ready to follow this path. In such a situation, it is being said that this is likely to increase competition between the two companies.
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