Food delivery and quick-commerce major Swiggy has secured shareholder approval to raise up to ₹10,000 crore through a qualified institutional placement (QIP), setting the stage for one of the largest equity issuances in India’s consumer internet sector this year.
In a regulatory filing on December 8, the company said shareholders passed the special resolution at its extraordinary general meeting, with 76.40 per cent of shareholders participating and 99.47 per cent of votes cast in favour of the fundraise.
Following this, the QIP issue was opened on Tuesday and the board approved the floor price as ₹390.51 a share.
Investment boost
The proposed raise gives Swiggy substantial room to invest across food delivery, Instamart and emerging business lines, as competition heats up in quick commerce. Under the resolution, the company is authorised to issue equity shares to qualified institutional buyers for an amount not exceeding ₹10,000 crore.
Swiggy ended the September quarter with ₹4,605 crore in cash. It is also expecting around ₹2,400 crore from the sale of a 12 per cent stake in mobility start-up Rapido, taking its available liquidity to just over ₹7,000 crore even before the QIP proceeds are added. The monetisation of the Rapido stake comes as the company strengthens its balance sheet ahead of the institutional placement.
Growth support
The fresh capital is expected to support growth opportunities, fund investments across Swiggy’s core and new verticals and provide a buffer in a market where competitive intensity is rising sharply. Instamart, Blinkit and Zepto continue to expand aggressively as the category scales, with higher investments expected over the coming quarters.
Investor demand and final pricing will be closely watched, particularly as quick-commerce platforms compete for capital and market share amid a renewed funding race in the segment.