Swiggy Board Approves Massive INR 10,000 Crore Funding Round

Foodtech major Swiggy has received board approval for a significant funding round, aiming to raise INR 10,000 crore (about $1.1 billion). This capital infusion could be executed in multiple phases using methods such as a Qualified Institutions Placement (QIP) or other avenues permitted under Indian regulations. Before proceeding, Swiggy must secure approval from its shareholders during an upcoming Extraordinary General Meeting (EGM).

Adding to its financial strength, Swiggy is also set to receive INR 2,400 crore from the divestment of its stake in the bike taxi service Rapido. Following this sale, the company's cash reserves are projected to reach approximately INR 7,000 crore. This financial maneuvering comes on the heels of Swiggy's impressive Q2 FY26 financial results, which showed a consolidated net profit surge of 74.4% year-over-year to INR 1,092 crore. Operating revenue also saw substantial growth, climbing 54% year-over-year to INR 5,561 crore.

Impact: This substantial fundraising and strong financial performance signal Swiggy's robust growth trajectory and its commitment to expanding its services and market position. It provides significant financial firepower for potential expansion, new service development, or competitive maneuvering within the food delivery and broader quick-commerce space. For investors, it indicates strong confidence in Swiggy's business model and future prospects, potentially influencing investment sentiment in the Indian startup ecosystem. Rating: 8/10.

Definitions: Qualified Institutions Placement (QIP): A method by which listed Indian companies can raise capital by issuing shares or other securities to Qualified Institutional Buyers (QIBs) without the need for fresh public offers. This allows for quicker fundraising. Extraordinary General Meeting (EGM): A meeting of shareholders of a company, held outside the regular annual general meeting, to discuss and vote on important matters that cannot wait until the next AGM, such as significant financial decisions like large fundraises.