Swiggy Set to Launch INR 10,000 Crore QIP Next Week

According to various media reports, Indian food delivery service Swiggy Ltd. is getting ready to raise up to 100 billion rupees ($1.1 billion) from institutional investors as early as next week. The Indian divisions of Citigroup Inc., JPMorgan Chase & Co., and Kotak Mahindra Capital Co. have been shortlisted by the business to oversee the share sale, according to the sources. Plans to raise up to 100 billion rupees through a qualified institutional placement were approved by Swiggy's board on November 7, pending regulatory and shareholder clearance. According to media reports, the deal's magnitude and timing could still alter.

Why Swiggy Decided to Raise Funds?

The company's efforts to raise money coincide with the fast growth of India's instant-commerce industry due to rising demand and escalating competition. In order to swiftly transport anything from groceries to gadgets, startups are vying with Amazon.com Inc. and Flipkart, which is backed by Walmart Inc., to cover towns with networks of local warehouses and fleets.

In November of last year, Swiggy started its $1.3 billion IPO. More than three times as many people registered for the offering, which was one of the few $1 billion+ listings in India in 2024. Due to intense discounting fuelled by a price war, its shares have dropped almost 30% so far this year. The competition between Meituan, JD.com Inc., and Alibaba Group Holding Ltd to provide steep discounts is mirrored in this trend in China.

Fund Raising Battle Intensified at Q-Commerce Sector

Previously known as Zomato, Eternal Ltd., a competitor of Swiggy, also received 85 billion rupees through a qualified institutional placement last year. As reported by the Economic Times last month, Zepto is getting ready for an IPO, restarting preparations that were put on hold earlier this year. According to the article, it plans to list between July and September of next year with the goal of raising $450 million to $500 million in new stock.