Swiggy, a leading food and grocery delivery company, has successfully raised Rs 10,000 crore in fresh capital through a qualified institutional placement (QIP). This significant funding was secured from prominent domestic mutual funds and global investors, including ICICI Prudential, SBI Mutual Fund, and Aditya Birla Sun Life.
The company's QIP was oversubscribed, with 80% of the issue being subscribed by domestic investors. Global investors such as Temasek, Norway's global pension fund, Vanguard, Capital Group, Nomura, and Goldman Sachs also participated in the QIP. This funding will enable Swiggy to strengthen its core businesses, scale its Instamart service, and invest in innovation to deliver unparalleled convenience to its customers.
Swiggy plans to deploy Rs 4,475 crore from the QIP proceeds to expand its quick commerce network. The company faces intense competition in the quick commerce segment, with players like Blinkit, Zepto, and BigBasket vying for market share. Amazon is also expanding its quick commerce operations in India, taking on the existing players in an increasingly competitive market.
According to BofA Research, Blinkit has more than 50% market share in the quick commerce segment, with the remaining share divided among Zepto, Instamart, Tata Digital-backed BigBasket, Flipkart Minutes, and Amazon Now. The competition is expected to intensify, with Walmart-owned Flipkart also entering the 10-minute delivery segment.
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