Swiggy Announces Major Fundraising Initiative
In a significant development for India's food delivery sector, Swiggy has revealed plans to raise up to ₹10,000 crore through various financial instruments. The company's board officially approved the fundraising proposal on Friday, November 7, 2025, marking a strategic move to bolster its financial position in an increasingly competitive market.
Fundraising Structure and Approval Process
The massive capital infusion will be executed through public or private offerings, potentially including a Qualified Institutional Placement (QIP) or other permissible modes. According to the company's filing with the Bombay Stock Exchange, the fundraising may occur in one or multiple tranches, subject to obtaining necessary approvals from shareholders and regulatory authorities.
Swiggy emphasized that the capital will be raised by issuing equity shares or other financial instruments in compliance with applicable laws. This move comes shortly after the company indicated it was exploring fresh fundraising options to strengthen its balance sheet and sustain growth momentum.
Competitive Landscape and Market Position
The fundraising announcement arrives at a crucial juncture for both food delivery and quick commerce sectors, where competition has intensified significantly. The timing is particularly noteworthy given that rival company Zepto recently secured $450 million (approximately ₹4,000 crore) at a valuation of $7 billion, substantially enhancing its financial capabilities and market positioning in the quick delivery space.
Despite facing widening losses, Swiggy maintains confidence in its financial health, pointing to its cash balance of ₹2,400 crore following the sale of its stake in bike-taxi platform Rapido earlier this year. The company's financial performance shows a mixed picture with robust revenue growth accompanied by expanding losses.
Financial Performance and Strategic Implications
Swiggy's consolidated financial results reveal a challenging yet growth-oriented trajectory. The company reported a consolidated net loss of ₹1,092 crore for the September quarter, significantly higher than the ₹626 crore loss recorded during the same period last year. This follows a net loss of ₹1,197 crore in the June 2025 quarter.
However, on the revenue front, Swiggy demonstrated impressive growth with consolidated revenue increasing by 54.4% year-on-year to reach ₹5,561 crore for the second quarter of FY26, up from ₹3,601 crore a year earlier. This substantial revenue growth indicates strong consumer demand and market penetration despite operational challenges.
The proposed fundraising is expected to provide Swiggy with additional financial flexibility as it seeks to consolidate its position across both food delivery and quick commerce segments. The capital injection will also help the company manage operational challenges while potentially preparing for a public listing in the future.
Industry analysts view this fundraising move as essential for Swiggy to maintain its competitive edge against well-funded rivals and continue expanding its service offerings in India's rapidly evolving food tech landscape.
