Indian food delivery and quick-commerce leader Swiggy Ltd. is gearing up for a major capital infusion. The company plans to raise as much as 100 billion rupees ($1.1 billion) from institutional investors, with the process potentially launching as early as next week, according to sources familiar with the development.
Banking Consortium and Approval Details
Swiggy has reportedly shortlisted three heavyweight banks to manage this significant share sale. The consortium includes the Indian arms of global giants Citigroup Inc. and JPMorgan Chase & Co., alongside domestic powerhouse Kotak Mahindra Capital Co.. The company's board formally greenlit the plan on November 7, approving a fundraising of up to 100 billion rupees through a Qualified Institutional Placement (QIP). This move remains subject to necessary shareholder and regulatory approvals. Sources caution that the final timing and size of the deal could still be adjusted.
Context: A Heated Battle in Instant-Commerce
This ambitious fundraising effort comes at a time of fierce competition and rapid growth in India's instant-delivery sector. Consumer demand for ultra-fast delivery of groceries, electronics, and other essentials is surging, prompting a costly race among startups and tech giants alike. Companies are battling to establish dense networks of neighborhood warehouses and delivery fleets to win customers. Swiggy's Instamart, along with rivals like Zepto, are competing not just with each other but also with deep-pocketed players like Amazon.com Inc. and Walmart-backed Flipkart.
The sector's dynamics mirror trends seen in other large markets. An intense price war has led to aggressive discounting, impacting the financial performance of listed players. Swiggy's shares, which debuted in a $1.3 billion IPO in November 2024, have declined approximately 30% year-to-date. This scenario echoes the competitive battle in China, involving giants like Meituan, JD.com, and Alibaba.
Rivals Also on the Fundraising Trail
Swiggy is not alone in seeking fresh capital to fuel growth and sustain the competitive fight. Its arch-rival, Eternal Ltd. (formerly Zomato), successfully raised 85 billion rupees last year through a similar QIP route. Meanwhile, quick-commerce contender Zepto is also advancing its plans for the public markets. According to a recent report in the Economic Times, Zepto has revived its IPO plans and is aiming for a listing between July and September 2025. The report indicates Zepto is targeting to raise between $450 million and $500 million in fresh equity.
When approached for comment, Swiggy, Citigroup, JPMorgan, and Kotak Mahindra did not immediately respond. The planned QIP underscores the high-stakes, capital-intensive nature of the instant-commerce boom in India, where companies are betting big on the future of hyper-fast delivery.
