Swiggy Plans $1.1 Bn Share Sale Next Week
- ByStartupStory | December 2, 2025
Food Delivery Giant Eyes QIP With Citi, JPMorgan, Kotak Amid Quick Commerce Push
Swiggy Ltd., India’s leading food delivery and quick commerce platform, is preparing to raise up to ₹10,000 crore ($1.1 billion) through a qualified institutional placement (QIP) as early as next week, according to sources familiar with the matter. The company has shortlisted Citigroup India, JPMorgan Chase India, and Kotak Mahindra Capital to manage the share sale, following board approval on November 7 for fundraising up to this amount subject to shareholder and regulatory nods.
Funding To Fuel Instamart Expansion Amid Intense Rivalry
Proceeds will bolster Swiggy’s war chest for aggressive dark store additions and supply chain scaling in quick commerce, where it trails Zomato’s Blinkit but aims to close the gap through 1,000+ new stores by FY27. With ₹7,000 crore cash post-Rapido stake sale, the QIP addresses competitive intensity after Zepto’s recent equity raise, targeting Ebitda breakeven for Instamart amid 20-25 minute deliveries.
Q2 FY26 showed revenue surging 54% YoY to ₹5,561 crore but net loss widening to ₹1,092 crore from food delivery investments and quick commerce ramp-up. Food Delivery now drives core value with superior scale versus Zomato, though analysts note execution lags in Instamart.
India’s Hottest IPO Market Provides Tailwinds
Timing leverages India’s record $19.6 billion IPO/QIP pipeline YTD, with midcaps popping 50% on listing. Swiggy shares rose 2% intraday to ₹394 amid reports, reflecting optimism despite 19% YTD decline. Nuvama highlights food delivery’s profitability profile justifying bulk valuation.
Peers validate: Zomato executed ₹8,500 crore QIP last year; Zepto eyes $450-500 million IPO mid-2026. BNP Paribas notes investor tilt toward Eternal (Zomato) but sees Swiggy rebound potential if Instamart hits contribution breakeven timelines.
Competitive Landscape And Valuation Dynamics
Quick commerce burns $2 billion+ annually across players, with Swiggy targeting 30% grocery share via Bolt/Genie. QIP dilution (5-7%) funds 2,000 dark stores, aiming $1 billion run-rate by FY27. Implied Instamart valuation remains low, prompting measured investor allocations pending execution proof.
Board’s November nod accelerates post-IPO momentum after $1.25 billion listing valued at $11.3 billion. With 55 million MAUs and 4 million DAUs, Swiggy bets on hyperlocal dominance amid Amazon/Flipkart entry threats.
This mammoth QIP—largest post-listing by a consumer tech firm—signals Swiggy’s conviction in quick commerce’s $50 billion TAM, positioning it for market leadership as India accelerates urban consumption digitization.
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