₹10,000 Cr QIP: Swiggy stock in focus after board approves fund raise

Synopsis: Swiggy’s stock is in focus after its board approved a Rs. 10,000-crore QIP to strengthen cash reserves and accelerate growth in food delivery and quick commerce, with Citi, JPMorgan, and Kotak appointed to manage the fundraising process.

This company is a new-age, consumer-first technology company offering users an easy-to-use convenience platform, accessible through a unified app is now in the spotlight after it plans to raise approx Rs. 10,000 crore through QIP.

With market capitalization of Rs. 99,247 cr, the shares of Swiggy Ltd are currently trading at Rs. 395 per share, increasing more than 3% in today’s market session making a high of Rs. 402.35, from its previous close of Rs. 388.35 per share.

A QIP (Qualified Institutional Placement) is a way for listed companies in India to raise capital quickly by issuing shares only to qualified institutional buyers such as mutual funds, banks, and insurance companies. 

About the QIP

Swiggy’s board approved a plan in early November 2025 to raise up to Rs. 10,000 crore (about $1.14 billion) through qualified institutional placement (QIP) and other permissible routes. This capital raise aims to fuel growth in its food delivery and quick commerce businesses amid intense competition. The fundraise may occur in multiple tranches and is subject to shareholder and regulatory approvals.

The company has appointed Citigroup, JPMorgan, and Kotak Mahindra Capital as advisors to oversee the share sale process. The funds will be primarily used to bolster cash reserves, expand quick-commerce fulfillment networks such as dark stores and warehouses, invest in technology and cloud infrastructure, support customer acquisition, fund brand marketing efforts, repay or pre-pay borrowings, and possibly pursue acquisitions. 

This move is intended to strengthen Swiggy’s market position against rivals like Zomato’s Blinkit and Zepto, who are aggressively expanding their quick commerce presence.

This fundraise comes as competitors like Zepto raised $450 million at a $7 billion valuation, and Blinkit targets rapid expansion to 3,000 dark stores by March 2027, underscoring the fierce contest in this space.

About the company 

Swiggy Ltd is one of India’s leading on-demand delivery platforms, best known for its food delivery services. Founded in 2014 and headquartered in Bengaluru, the company has expanded beyond food to offer quick-commerce through Instamart.

Swiggy operates in hundreds of cities, leveraging a large delivery fleet, strong technology infrastructure, and partnerships with restaurants and retailers. It has become a major player in India’s digital consumption ecosystem, focusing on convenience, speed, and a diversified service portfolio.

Sales of the company rose 54% year-on-year to Rs. 5,561 crore from Rs. 3,601 crore. However, EBITDA weakened with losses widening to Rs. 799 crore. Net loss to Rs. 1,092 crore compared to Rs. 626 crore a year earlier. Despite this, EPS improved sharply to Rs. -4.38 from Rs. -62.75.

Written by Manideep Appana

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