Swiggy Plans Rs 10,000-Crore War Chest To Power Instamart's Fight Against Blinkit And Zepto

Swiggy, the Bengaluru-based food delivery giant, is gearing up for a massive Rs 10,000 crore fundraise through a Qualified Institutional Placement (QIP) or other routes, as it faces fierce competition in the quick commerce space from close rivals like Blinkit and Zepto.

“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,” said Rahul Bothra, Chief Financial Officer (CFO) at Swiggy, in an interview with NDTV Profit on Friday.

“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 is eyeing a transition to an inventory-led model for Instamart. This move is contingent on crossing a "majority threshold" for domestic shareholding, a requirement under India's Foreign Direct Investment (FDI) regulations.

Current FDI regulations bar foreign-funded marketplaces from owning inventory, but domestic shareholding has surged past 43% since listing: more than double the post-IPO level.

“Currently, we are a marketplace. At the same time, there is the option to convert into an inventory model once your domestic shareholding crosses the majority threshold. It's an eventuality over the medium term," the CFO said.

The high-growth quick-commerce business is also moving towards profitability. Bothra reaffirmed guidance to achieve "contribution margin break-even" by the June 2026 quarter.

Rohit Kapoor, CEO of Swiggy's Food Marketplace, added that the division saw its "strongest MTU (Monthly Transacting Users) growth in eight quarters" in Q2FY6, with users growing from 14 million to 17 million over the past year. 

“Medium term, looking at 5% kind of an EBITDA margin guidance, which makes it a highly profitable cash-generating business over time,” Kapoor said.

He hinted at a balanced approach: “What it will do over three years, five years and I think the best way to describe it on profitability and growth is that we continue to operate with a telescope and a microscope at the same point in time.”

Swiggy reported an 18.8% year-on-year (YoY) rise in Gross Order Value (GOV) to Rs 8,542 crore in Q2FY26. Adjusted EBITDA margin rose 125 basis points YoY to 2.8% of GOV.

Shares of Swiggy closed 1.99% lower at Rs 409.65 apiece on the NSE, while the benchmark Nifty50 ended at 25,722.1, down 0.6%.