- Swiggy board approved raising up to Rs 10,000 crore via institutional placements.
- The company plans to explore private and public placements for fund raising.
- Swiggy aims to invest in quick commerce growth and business innovations.
Swiggy Ltd.'s board of directors have approved its plan to raise up to Rs 10,000 crore via qualified institutional placements and other means, according to an exchange filing on Friday.
The filing stated that Swiggy has received board nod to explore more than one route for raising funds, primarily via private or public placements.
The fundraise comes as the food delivery and quick-commerce company faces fierce competition in the quick commerce space from close rivals like Blinkit and Zepto.
Rahul Bothra, Chief Financial Officer (CFO) at Swiggy, in an interview with NDTV Profit said, "We have seen continued heightened investments in the sector. Both legacy and new players continue to attract more and more investments. And we therefore want to have the flexibility to raise this growth capital."
“Some of it is going to be strategic reserve, at the same time to be able to invest in growth of the quick commerce business, as well as some of the innovations that we continue to incubate in the business,” he added.
Swiggy Q2 Performance
Swiggy reported a 54.4% year-on-year rise in its consolidated revenue during the quarter ended September, according to the company's financial results declared last week.
The food delivery major logged a revenue of Rs 5,561 crore in the second quarter, compared to Rs 3,601 crore in the same quarter last year.
The company's loss in the second quarter widened to Rs 1,092 crore, as compared to a loss of Rs 554 crore in the same quarter of the previous fiscal.
Operating loss or earnings before interest, taxes, depreciation, and amortisation widened to Rs 798 crore.
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