Swiggy has opened its INR 10,000 Cr ($1.2 Bn) qualified institutional placement (QIP) for subscription

The floor price of the issue is set at INR 390.51 per share, a near 2% discount from the company’s closing price of INR 397.95. Besides, the company may offer a discount of up to 5% on the floor price

A minimum of 10% of the issue would be reserved for mutual funds while the remainder would be available for subscription to all eligible QIBs

A day after receiving shareholder nod, consumer services major Swiggy has opened its INR 10,000 Cr ($1.2 Bn) qualified institutional placement (QIP) for subscription. The floor price of the issue is set at INR 390.51 per share, a near 2% discount from the company’s closing price of INR 397.95. Besides, the company may offer a discount of up to 5% on the floor price.

A minimum of 10% of the issue would be reserved for mutual funds while the remainder would be available for subscription to all eligible QIBs.

In line with expectations, a majority of the funds would be utilised to expand its quick commerce vertical, Instamart. The largest share of INR 4,475 Cr is earmarked for expanding and running its quick commerce fulfillment network. With the fresh investment, the company intends to expand its fulfilment network area to 6.7 Mn sq ft by the end of 2028 from 5 Mn sq ft at the end of November.

Besides, the company would be pumping in INR 2,340 Cr in brand marketing and business promotion and INR 985 Cr to beef up its tech and cloud infrastructure. The remainder would be used for inorganic growth through unidentified acquisitions and for general corporate purposes.

The QIP comes almost a year after Swiggy raised INR 4,999 Cr via the fresh issue of its IPO in November 2024. The company has been burning a lot of capital over the past fiscal year to expand its presence in the highly competitive quick commerce market.

Important to mention that the industry leader Blinkit’s parent Eternal also raised INR 8,500 Cr (around $1 Bn) via a QIP in November. Since then, Blinkit has switched gears in terms of top line growth, witnessing a near 8X jump YoY to INR 9,891 Cr in Q2 FY26.

The growth spurt for Blinkit came at the behest of it moving into an inventory-led model from the erstwhile marketplace model. Under the new model, Blinkit buys products directly from brands, stores them in its own dark stores and sells them to customers. This allows Blinkit greater control over pricing, margins and stock.

As per sources, Swiggy is also exploring to switch to the inventory-led model in the near term. Back in September, its board approved a proposal to transfer all of Instamart’s assets, liabilities, employees, permits, contracts and intellectual property to Swiggy Instamart Private Limited, its indirect wholly owned subsidiary.

Analysts Inc42 spoke with shortly after the hive off pointed out that the quick commerce entity could likely pivot to an inventory-led model from the marketplace structure, where brands are listing their products on Instamart’s application.

To enable that transition, Swiggy would need to bolster its domestic shareholding as Indian foreign direct investment (FDI) regulations prohibit foreign-funded marketplaces from owning inventory or exerting control over sellers.

Swiggy’s push for domestic capital comes amid increasing competition in the sector. Zepto recently raised $450 Mn (INR 4,043 Cr) in primary capital to expand its network, while Eternal has said it expects its dark store count to rise to 2,100 by December 2025.

Besides its quick commerce fray, Swiggy has been tightening its portfolio. Apart from spinning off Instamart, the company is shutting down its professional services marketplace Pyng, launched earlier this year, and has already closed Genie and Swiggy Minis during 2025.

Overall, Swiggy reported strong numbers in Q2 FY26 with a 74% YoY rise in consolidated net profit to INR 1,092 Cr and a 54% jump in operating revenue to INR 5,561 Cr. Including the proceeds from its Rapido stake sale, the company said its cash balance stood at about INR 7,000 Cr at the end of the quarter.

Instamart, however, continues to drag overall profitability. In Q1 FY26, the quick commerce arm reported INR 797 Cr in losses, nearly triple the INR 280 Cr loss in Q1 FY25, even as revenue doubled to INR 806 Cr during the same period.

Shares of Swiggy ended today’s trading session up 3.14% at INR 397.95.