Swiggy Plans ₹10,000 Crore Capital Raise Amidst Widening Losses and Revenue Growth

Swiggy's board of directors is scheduled to meet to deliberate on a proposal to raise a substantial ₹10,000 crore. This capital infusion could be channelled through a Qualified Institutional Placement (QIP), public or private offerings, or other permissible methods. The primary objective behind this fundraising is to bolster Swiggy's financial standing and provide resources for its ongoing expansion and diversification strategies across its key business areas.

This plan is being considered even as Swiggy has seen its net loss widen significantly by 74.4% year-on-year to ₹1,092 crore in the second quarter (Q2) of FY26. This increase in loss is attributed to aggressive investments in its quick-commerce service, Instamart. Despite the higher losses, the company demonstrated strong operational momentum with revenue from operations jumping 54.4% year-on-year to ₹5,561 crore in Q2 FY26. Earlier, in September, Swiggy had strengthened its cash position by raising ₹2,399 crore through the sale of its entire 12% stake in Rapido.

Impact This substantial capital raise signifies Swiggy's strategic intent to maintain its growth trajectory and competitive edge in the food delivery and quick-commerce market. If successful, it could provide a critical financial buffer for further expansion, technological upgrades, and potential new ventures. However, the widening losses underscore the high operational costs and competitive pressures in the sector, which could be a concern for investors. The successful execution of this fundraising will be a key indicator of investor confidence in Swiggy's long-term prospects. Rating: 7/10.

Difficult Terms: Qualified Institutional Placement (QIP): A method for listed companies to issue shares or securities to a select group of qualified institutional buyers without the need for public offer, allowing for faster capital raising. Year-on-year (YoY): A comparison of financial data over a specific period with the data from the corresponding period in the previous year. Quick-commerce: A fast-growing segment of e-commerce focused on ultra-fast delivery of goods, typically within minutes, often for groceries and convenience items. Balance sheet: A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time. It provides a snapshot of a company's financial health.