Swiggy starts Rs 10,000-cr fundraising via QIP; floor price set at Rs 390.51 per share

Food and grocery delivery platform Swiggy has moved ahead with one of the largest equity raises by a new-age Indian internet company, with its board approving a Rs 10,000-crore qualified institutional placement (QIP). The decision was disclosed in a stock exchange filing on Tuesday, a day after shareholders cleared the fundraising proposal.

The company has set a floor price of Rs 390.51 per share, slightly below Tuesday’s BSE closing price of Rs 397.95. Swiggy, which was listed on the bourses in November 2024 at an IPO price of Rs 390, added that it may offer up to a 5% discount on the floor price.

At the indicated floor price, Swiggy’s valuation stands at around Rs 97,400 crore. Issuing Rs 10,000 crore worth of fresh shares will lead to an estimated 9.3% equity dilution on a post-money basis—potentially higher if the issue is priced at a deeper discount. For context, rival Eternal (parent of Zomato and Blinkit) had diluted only 3.7% when it raised Rs 8,500 crore through a QIP last year.

The fundraising comes amid intense competition in the quick-commerce sector, where Swiggy’s Instamart is battling Blinkit, Zepto, BigBasket, Flipkart and Amazon for dominance in the fast-delivery market. Zepto is also expected to file confidential IPO papers soon, adding pressure to scale aggressively.

Swiggy said the QIP proceeds will be used to expand Instamart’s fulfilment infrastructure, including dark stores and warehouses, strengthen its technology and cloud systems, accelerate brand-building, and explore strategic M&A opportunities, subject to regulatory approvals.

Kotak Mahindra Capital, JP Morgan India and Citigroup are acting as book-running lead managers, and the company has filed its preliminary placement document with both the BSE and NSE.

Swiggy previously raised Rs 11,327 crore during its November 2024 IPO, which included Rs 4,500 crore of fresh issuance and Rs 6,828 crore via an offer for sale. Despite the strong listing, the stock has declined more than 25% year-to-date in 2025, prompting the company to reinforce its balance sheet and fuel its expansion strategy through this fresh round.