Swiggy's Massive New Fundraising Plan Draws Investor Ire
Just one year after its high-profile initial public offering (IPO), Indian food delivery giant Swiggy is back in the market seeking a massive new infusion of capital, a move that has raised serious questions from prominent investors. Devina Mehra, the founder and chairperson of First Global, has publicly challenged the company's frequent need for funds, pointing to its substantial and widening losses.
A Year After IPO, Another Capital Call
The controversy erupted after Swiggy's board of directors, in an exchange filing dated 7 November 2025, approved plans to raise up to ₹10,000 crore. This fundraising is intended to be executed through one or more qualified institutions placements (QIPs). This announcement comes almost exactly a year after the company's IPO, which brought ₹4,500 crore into the company's coffers, alongside an offer for sale (OFS) worth over ₹6,800 crore that provided an exit for earlier investors.
Expressing her astonishment on the social media platform X, Devina Mehra wrote, "Swiggy management has just discovered that it is an environment which is 'competitive and dynamic'... And hence surprise surprise it needs more money." She highlighted the apparent contradiction, noting that the money from the IPO was supposed to fuel growth without immediate further need. "Now the public markets mostly provide an exit for promoters and earlier round investors," she added, flagging a broader trend in the startup ecosystem.
The Financial Strain and Valuation Concerns
Mehra's criticism is grounded in Swiggy's challenging financial performance. The company's consolidated net loss widened significantly to ₹1,092 crore in the September quarter of the current fiscal year, up from ₹626 crore in the same period a year ago. This follows a net loss of ₹1,197 crore in the quarter ended June 2025.
While the company has shown impressive revenue growth—consolidated revenues surged 54.4% to ₹5,562 crore in Q2 FY26—the bottom line remains deep in the red. Mehra pointedly remarked, "But I suppose when you are making losses at the rate of ₹1,100 crores a quarter, there is anyway no return on capital to dilute." She also questioned the valuation methodologies often used for such 'new age' companies, stating, "A friendly reminder that there is only one way to value a company and fancy new valuation ratios & parameters are used only to justify a valuation, not to do a valuation."
Despite these losses, Swiggy's market capitalization stood at over ₹1 trillion as of 7 November 2025, illustrating the complex relationship between investor expectations and current financial reality in the tech sector.
