Swiggy to raise $1.1 billion via QIP next week: Report

Swiggy Plans $1.1 Billion Fund Raise via Qualified Institutional Placement

Quick commerce company Swiggy is reportedly planning to raise $1.1 billion through a qualified institutional placement, according to a recent Bloomberg report.

• The report indicates that the QIP could take place as early as next week.
• Citigroup, JPMorgan Chase, and Kotak Mahindra Capital are likely to act as bankers in the proposed share sale.
• The company's board of directors approved the scheme for a fund raise of up to Rs 10,000 crore from institutional investors through a QIP placement on November 7.

Why is Swiggy Raising Funds?

Swiggy's fundraising plans come amid a rapidly expanding quick commerce sector in India, driven by increasing demand and intensifying competition.

• Startups like Swiggy and Zepto are competing with Amazon and Walmart-backed Flipkart to cover cities with networks of warehouses and fleets, enabling the quick delivery of everything from groceries to electronics.
• Indian Q-comm startups are considering raising more funds as competition in the Q-comm space intensifies with the increasing presence of global giants.
• Swiggy's competitor, Eternal (Zomato and Blinkit parent company), raised Rs 8,500 crore via a qualified institutional placement earlier last year.

Zepto Revives IPO Plans

Another quick commerce platform, Zepto, is reviving its IPO plans shelved earlier this year, according to a Bloomberg report.

• Zepto is seeking to list between July and September next year, targeting $450 million to $500 million in fresh equity.

Swiggy Share Price

Swiggy's share price has fallen about 19 per cent over the last 1 year.

• In Q2 FY26, Swiggy reported a net loss of Rs 1,092 crore in the second quarter, wider than the Rs 626 crore loss in Q2 FY25.
• The company's revenue from operations stood at Rs 5,561 crore, representing a 54.4% year-over-year (YoY) increase from Rs 3,601 crore.

Financial Highlights:

Revenue from operations: Rs 5,561 crore (54.4% YoY increase)

Net loss: Rs 1,092 crore (wider than Rs 626 crore in Q2 FY25)