Swiggy Set to Raise Rs 10,000 Crore for Growth Amid Competitive Market

Swiggy plans to raise up to Rs 10,000 crore to enhance its growth capital through Qualified Institutional Placement or other means. Despite a strong cash position bolstered by the Rapido divestment, Swiggy seeks more funds to maintain strategic flexibility amid a competitive market.

Swiggy announced on Friday that its board has greenlit the raising of up to Rs 10,000 crore in one or more tranches. The funds will be raised through Qualified Institutional Placement (QIP) or other accepted methods, aiming to enhance its growth capital in an increasingly competitive industry.

In a regulatory filing, Swiggy detailed that during its board meeting on November 7, the directors approved the fundraising strategy involving public or private offerings, including through multiple tranches. The company intends to gather up to Rs 10,000 crore, pending necessary approvals.

With its existing cash reserves strengthened by the Rs 2,400 crore from the Rapido divestment, Swiggy remains well-funded for its growth targets. However, the dynamic and competitive market landscape has prompted the board to consider further fundraising to ensure sufficient growth capital and strategic flexibility going forward.

(With inputs from agencies.)