Swiggy to hold board meeting to mull Rs 10,000 Cr fundraise
The proposed fundraise comes as the food-tech giant reported widening losses in Q2, weighed down by higher spending.
Food-tech firm Swiggy on Thursday said it is holding a board meeting on Friday to consider and approve raising up to Rs 10,000 crore to boost its growth capital reserves amidst rising competition in the segment.
The Sriharsha Majety-led firm also noted that the firm has invested heavily in its quick commerce business at an accelerated pace as the category grew faster than its expectations, driving it to move investments into the segment forward.
The news comes after the company saw its losses for the second quarter widen to Rs 1,092 crore from Rs 626 crore a year earlier, weighed down by spending outpacing revenue growth.
Swiggy has been trying to bolster its balance sheet amidst rising costs, and added in its shareholder letter that its stake sale in ride-hailing firm Rapido is expected to accrue Rs 2,400 crore towards its treasury balance.
In September, the company said it would sell its stake in Roppen Transportation Services—the parent entity of Rapido—to consumer internet firm Prosus and WestBridge Capital for Rs 2,399 crore.
The move came after the ride-hailing firm rolled out its food delivery app, Ownly, placing Swiggy in a potential conflict of interest.
The company added that the fundraise is expected to complement increasing profitability in its food-delivery business as well as its current cash balance, which will be bolstered after its divestment in Rapido.
“However, the external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector. This has necessitated a conversation with the Board to consider an additional fundraise which will give us access to sufficient growth capital while enhancing our strategic flexibility,” the company said in the letter.
Swiggy posted revenue from operations of Rs 5,561 crore in Q2 FY26, up sharply from Rs 3,601 crore earned a year earlier. Total revenue climbed to Rs 5,620 crore.
However, the rise in revenue couldn't outstrip expenses, which climbed 55.7% to Rs 6,711 crore from Rs 4,309 crore in Q2 FY25.
Edited by Jyoti Narayan