Swiggy Raises ₹10,000 Cr via QIP; Instamart Expansion In Focus

Swiggy Limited on Saturday informed stock exchanges that its qualified institutions placement (QIP) last week raised nearly ₹10,000 crore. The issue opened on December 9 and closed on December 12.

The food and grocery delivery giant said its board committee has approved the allotment of 26.67 crore equity shares to eligible qualified institutional buyers at an issue price of ₹375 per share, including a premium of ₹374. The issue price represents a discount of 3.97% to the floor price of ₹390.51 per share. On Friday, Swiggy’s shares closed at ₹416.70 on the BSE.

Following the allotment, Swiggy’s paid-up equity share capital has increased to ₹2,760.31 crore from ₹2,493.65 crore. The total number of outstanding equity shares now stands at 276.03 crore, up from 249.36 crore earlier.

Swiggy also disclosed the names of institutional investors that were allotted more than 5% of the shares offered in the issue. These include funds managed by ICICI Prudential, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund.

More than 80% of the QIP was taken up by domestic investors, with mutual funds accounting for about 37% of the issue. ICICI Prudential Mutual Fund emerged as the largest buyer, securing around 16% of the placement. Other domestic mutual fund investors included SBI, HDFC, Nippon India, Kotak, Mirae Asset, Axis and Aditya Birla Sun Life, among others. Insurance companies such as ICICI Prudential Life Insurance and HDFC Life Insurance were also key participants.

Among global investors, participation came from marquee names such as Temasek, Norway’s sovereign wealth fund, Capital Group, Vanguard, BlackRock, Fidelity, Nomura Asset Management, Goldman Sachs Asset Management and the Government of Singapore Investment Corporation (GIC).

Swiggy said more than 80 investors submitted bids in the QIP, with allocations made to 61 investors, including over 15 new shareholders.

Swiggy Managing Director and Group CEO Sriharsha Majety said the strong response from both domestic and global institutions, including several new investors since the company’s IPO last year, reflected confidence in Swiggy’s business fundamentals and long-term growth strategy.

“The additional capital provides us with the flexibility to strengthen our core businesses, scale Instamart while maintaining financial prudence, and invest in innovation to continue delivering unparalleled convenience,” he added.

How Swiggy Plans to Invest the Money

Swiggy plans to use the largest share of its QIP proceeds, around ₹4,475 crore, to scale up and operate its quick-commerce fulfilment network. This includes investments in dark stores and warehouses that support Instamart, its rapid-delivery arm.

Instamart is competing aggressively in the 10-minute delivery space against Blinkit, Zepto and Tata Digital-owned BigBasket, while also facing pressure from Flipkart and Amazon. Zepto is expected to soon file confidential draft papers for its proposed initial public offering.

Swiggy’s consolidated cash burn rose to ₹740 crore in the September quarter, exceeding that of Eternal, with Instamart accounting for a substantial portion. By September, the company had already utilised more than 80% of the funds raised in its November 2024 IPO, largely to absorb losses in quick commerce.

Swiggy intends to expand its fulfilment footprint from about 5 million sq ft as of November 30, 2025, to roughly 6.7 million sq ft by December 2028.

Another ₹985 crore has been set aside for technology and cloud infrastructure. The company said its current cloud contract expires in February 2026 and that it has signed a non-binding letter of intent for a proposed cloud commitment of ₹1,820 crore over six years.

In addition, Swiggy has earmarked ₹2,340 crore for brand marketing and business promotion. It has already placed purchase orders worth ₹1,961 crore with marketing agencies for the December 2025–November 2027 period, signalling continued high spending on customer acquisition and brand building.

Swiggy’s cash balance now stands at over ₹14,000 crore, after also generating about ₹2,400 crore from the sale of its stake in Rapido. This brings its liquidity closer to Eternal’s cash balance of ₹18,314 crore as of the second quarter of FY26, while Zepto reported cash reserves of ₹7,900 crore.