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Swiggy Eyes Rs 10,000 Crore Boost for Delivery Wars
9 Dec
Summary
- Swiggy's board approved raising Rs 10,000 crore via qualified institutional placement.
- The fundraise aims to fuel competition in the fast-growing quick commerce sector.
- Swiggy faces intense rivalry from Blinkit, Zepto, BigBasket, Flipkart, and Amazon.
Food and grocery delivery giant Swiggy has received board approval to launch a qualified institutional placement (QIP) aiming to raise Rs 10,000 crore. This substantial capital infusion is slated to strengthen its quick commerce unit, Instamart, which is currently engaged in a fierce market share battle. The move underscores Swiggy's commitment to accelerating investments in a rapidly growing category.
The Bengaluru-based company faces formidable competition from established players and emerging quick commerce rivals such as Blinkit, Zepto, BigBasket, Flipkart, and Amazon. Zepto, in particular, is reportedly preparing for its own initial public offering, highlighting the dynamic and competitive landscape.
This capital raise follows Swiggy's IPO in November 2024, where it secured approximately Rs 4,500 crore. The company noted that a significant portion of its IPO funds had been utilized by September, largely due to investments in Instamart. The additional funds are intended to enhance strategic flexibility and secure growth capital.
