Swiggy board approves up to ₹10,000 crore raise for Instamart growth
Sale of Rapido stake to add ~₹2,400 crore; cash reserves near ₹7,000 crore
QIP or alternate issuances pending shareholder EGM approval; timetable not fixed
Foodtech major Swiggy said on Friday its board has approved a plan to raise up to ₹10,000 crore (about $1.1 billion) through public or private market issuances, including a qualified institutional placement (QIP).
This comes as the company looks to bulk up its war chest and accelerate growth in quick commerce. The fundraise still needs shareholder approval; Swiggy will call an extraordinary general meeting to seek that clearance.
Swiggy said the ₹10,000-crore programme may be executed in one or more tranches and through any route permitted under Indian law. Company executives have framed the raise as a mix of growth capital and strategic reserves to strengthen the balance sheet as competition intensifies in instant grocery and convenience delivery.
Rapido Stake Sale
The capital plans come as Swiggy prepares to monetise an asset. The company is slated to receive about ₹2,400 crore from the sale of its stake in ride-hailing firm Rapido, a transaction the company says will further lift its cash position. With that sale, Swiggy’s cash reserves are expected to approach ₹7,000 crore, providing near-term liquidity even before any fresh equity is issued.
Management has been explicit about how it may deploy the proceeds. During the company’s Q2 FY26 earnings call, CFO Rahul Bothra said the board had discussed raising additional capital “more towards growth as well as strategic reserves,” with a particular focus on expanding quick commerce (Instamart) and shoring up resources to compete as legacy and new players double down on the segment.
Swiggy Expansion Moves
The fundraise follows a quarter of rapid top-line expansion. Swiggy reported consolidated operating revenue of ₹5,561 crore in Q2 FY26, up roughly 54% year-on-year. The company, however, continued to report significant losses as it prioritises investment and expansion, a dynamic Bothra and other executives say makes having ample liquidity critical.
Swiggy’s planned capital move sits against a broader industry push for instant-delivery scale. Rivals such as Zepto and Blinkit have been raising money and expanding dark-store footprints, while heavyweights like Amazon and Jio are also pushing into quick commerce. Swiggy’s recent sale of Rapido and its plan for a large equity raise signal a bid to preserve optionality, to keep investing aggressively while retaining buffer capital for strategic opportunities.
The timetable for the QIP or other issuance has not been fixed, shareholders must first grant approval at a planned EGM. Swiggy said it does not currently expect to seek additional capital beyond the proposed ₹10,000-crore programme. Investors will watch how the company balances further expansion with a path to durable profitability as competition and unit-economics pressures intensify.
