Swiggy approves Rs 10,000 crore fundraise as quick-commerce battle with Zepto and Blinkit heats up – News Air Insight

Spread the love


Food delivery giant Swiggy has cleared a fundraising plan of up to Rs 10,000 crore, through a combination of public or private offerings, including qualified institutional placements (QIP) or other permitted modes. The move, approved by its Board on November 7, is aimed at strengthening its balance sheet and bolstering its position in India’s fiercely competitive quick-commerce and food delivery markets.

The company said it will seek shareholder approval through an extraordinary general meeting (EGM) conducted via video conferencing, as required under Sebi regulations.

War chest for growth and competition

The latest fundraising comes at a time when Swiggy faces renewed pressure from rivals Zepto and Blinkit (Zomato), both of which have intensified their push in India’s 10–15-minute delivery segment. To keep pace, Swiggy is also evaluating a separate capital raise for its quick-commerce arm, Instamart, which has recently been spun off into a standalone subsidiary.

The move is seen as a step toward giving Instamart operational autonomy and attracting dedicated investors focused on the fast-growing instant-delivery space.

According to analysts, the Rs 10,000 crore capital raise will give Swiggy greater financial flexibility to fund aggressive expansion in both its food delivery and Instamart verticals while balancing investments in technology, logistics, and marketing.

Financial performance improving

Swiggy has been showing signs of operational improvement even as it remains loss-making. For the September quarter (Q2FY26), the company reported a net loss of Rs 1,092 crore, narrowing from Rs 1,197 crore in the previous quarter. Revenue from operations rose 54% year-on-year (YoY) to Rs 5,561 crore, while adjusted revenue stood at Rs 5,900 crore, growing 52.6% YoY.

Gross order value (GOV) grew 18.8% YoY and 5.6% sequentially, while the company’s EBITDA loss of Rs 695 crore was better than estimates.

Morgan Stanley maintained its “Overweight” rating on the stock, noting that Swiggy’s EBITDA at Rs 240 crore exceeded projections, reflecting stronger operational efficiency and lower burn.

Brokerages stay positive despite competition

Brokerage Motilal Oswal expects Swiggy’s food delivery business to continue operating in a balanced duopoly with Zomato (now renamed Eternal in research reports), projecting 20–22% GOV growth over FY26–27. It values the food delivery arm at 30x FY27E EBITDA and the quick-commerce vertical at a 0.5x FY27E EV/GMV multiple, about 60% lower than Eternal’s valuation.

“Swiggy remains our preferred pick on relative valuation comfort,” the brokerage said, maintaining a BUY rating with a target price of Rs 550, implying 36% upside from current levels.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *