Swiggy plans $1.5 billion QIP to tackle quick commerce competition
Swiggy is gearing up to raise up to $1.5 billion through a qualified institutional placement (QIP), aiming to cement its spot in the fast-expanding quick commerce market.
This big move is all about keeping pace with rivals like Zepto and Blinkit, and possibly shifting toward an inventory-led model for better control.
Swiggy's shift toward inventory-led model
Swiggy wants more say over how products are sourced and priced, so it's eyeing a switch from its current marketplace setup to handling inventory directly.
This shift means they'll need more domestic investors due to Indian FDI rules.
As of June 30, Swiggy was valued at about ₹96,000 crore and had ₹5,300 crore in cash—a figure set to rise after selling its stake in Rapido.
Fresh funds to bolster operations and competitiveness
With a quarterly burn rate of over ₹1,000 crore, Swiggy's cash reserves would last just six or seven months at this pace.
The fresh funds from QIP should help keep their operations running smoothly and give them extra firepower as competition heats up in the quick commerce space.