Food and grocery delivery giant Swiggy is reportedly exploring a qualified institutional placement (QIP) of up to $1.5 billion to strengthen its balance sheet and reinforce its position in India’s rapidly expanding quick commerce market, according to multiple sources familiar with the development.
Amid rising competition following Zepto’s latest fundraise, Swiggy is also considering a separate capital infusion for its 10-minute delivery arm, Instamart, which has recently been moved under a standalone subsidiary.
People aware of the matter said that discussions with potential investors remain at an early stage. However, the size of the proposed QIP, currently pegged at $1 billion, could increase to as much as $1.5 billion. If the placement materializes, Swiggy will be able to boost domestic shareholding as it plans to transition to an inventory-led model.
Another source said the Bengaluru-based company remains open to raising funds independently for its quick commerce business, which now operates as a step-down subsidiary.
At the current market price of ₹420.50 per share, Swiggy’s market capitalization stands at approximately ₹96,000 crore.
Following its $450 million fundraise, Zepto cofounder and CEO Aadit Palicha stated that the company’s cash reserves had risen to $900 million, including the secondary share sale by existing investors.
Industry experts said the proposed QIP underscores Swiggy’s intent to strengthen its financial position ahead of intensifying competition in the quick commerce sector.
“The quick commerce space is in an armed standoff between incumbents with strong cash reserves. External factors such as Amazon Now, Flipkart Minutes, and the entry of JioMart add another layer of competition—although they have yet to prove their mettle,” said Karan Taurani, Executive Vice President, Elara Securities, a Mumbai-based brokerage.
As of June 30, Swiggy held around ₹5,300 crore in cash. The company expects to add another ₹2,400 crore once it completes the sale of its stake in bike-taxi startup Rapido to Prosus and WestBridge Capital, bringing its total cash balance to approximately ₹7,800 crore.
However, Swiggy reportedly burned over ₹1,000 crore in the April–June quarter, indicating a cash runway of six to seven months if spending continues at the same pace.
“There is a general favorable trend toward overall consumption and, especially, quick commerce. If Swiggy wants to raise from public market investors, this would be the time to do so,” said a Mumbai-based analyst with a global brokerage firm. “Given Zepto’s recent funding round, competition is expected to pick up again, and a strong balance sheet will ensure Swiggy does not lose out on growth opportunities.”
