Swiggy Raises ₹10,000 Crore: Where Will the Money Go?

Swiggy is making headlines again, but this time it isn't for a food delivery offer. The food and quick-commerce giant is in the process of raising a massive ₹10,000 crore (approx. $1.2 billion) through a financial route known as a QIP (Qualified Institutional Placement).

The move has seen incredible interest from investors, with the demand exceeding the offer by 4 times. India’s top mutual fund houses, including SBI, ICICI Prudential, HDFC, and Kotak Mahindra, are lining up to invest.

But what exactly is a QIP, and more importantly, how does Swiggy plan to spend this massive amount of money? Let’s break it down.

First, What is a QIP?

For beginners, a Qualified Institutional Placement (QIP) is a way for listed companies to raise capital without going to the general public (like in an IPO). Instead, they sell new shares to "Qualified Institutional Buyers" (QIBs), which are large financial institutions, such as mutual funds, Banks, and Insurance companies.

It is a faster and more efficient way for companies to get cash when they need it for growth.

The Numbers at a Glance:

• Floor Price: Swiggy set the minimum price for these shares at ₹390.51.
• Market Price: On the morning of December 10, Swiggy shares were trading higher, around ₹402 on the BSE.
• Demand: The offer was oversubscribed by more than four times, indicating that large investors have strong confidence in Swiggy’s future.

How Will Swiggy Spend ₹10,000 Crore?

Swiggy isn't just keeping this cash in the bank. They have a detailed plan to deploy these funds to fight competition and grow bigger. Here is the breakdown of their spending plan:

1. Supercharging Instamart (₹4,475 Crore)

The biggest chunk of the money is going towards Quick Commerce. Swiggy plans to aggressively expand its network of "Dark Stores" (small warehouses that fulfil your 10-minute deliveries) and larger warehouses.

• The Goal: They want to increase their fulfilment footprint from 5 million square feet (as of Nov 2025) to 6.7 million square feet by December 2028.
• Why? To ensure faster deliveries and cover more areas across India.

2. Aggressive Marketing & Branding (₹2,340 Crore)

Competition in the delivery space is fierce. To keep Swiggy and Instamart at the top of your mind, the company has set aside over ₹2,300 crore for marketing.

• The Commitment: Swiggy has already issued purchase orders worth ₹1,961 crore to marketing agencies for the period between December 2025 and November 2027. This means we can expect to see a lot of Swiggy ads and promotions over the next two years.

3. Tech & Cloud Infrastructure (₹985 Crore)

Running an app that handles millions of orders requires powerful technology. Swiggy has earmarked nearly ₹1,000 crore for technology and cloud infrastructure.

• Future Proofing: Their current cloud contract expires in early 2026. They are already planning a new commitment worth ₹1,820 crore over six years to ensure their app remains fast and reliable.

4. Buying Other Companies (Inorganic Growth)

Up to 25% of the total money raised can be used for "Inorganic Growth." In simple terms, this means acquisitions.

• While Swiggy hasn't named any specific targets yet, they have a history of buying companies that fit their ecosystem (like Dineout for restaurant reservations and Lynks Logistics). This fund gives them the power to buy new businesses if a good opportunity arises.

Is the Money Safe?

To ensure the money is used exactly as promised, Swiggy has appointed CRISIL Ratings as a monitoring agency. They will track how the funds are utilised every quarter.

Until the money is deployed for these specific goals, Swiggy will park the surplus cash in safe instruments like Debt Mutual Funds, Government Securities, and Bank Deposits.

Conclusion

Swiggy’s successful QIP shows that institutional investors are betting big on the future of quick commerce and food delivery in India. With a war chest of ₹10,000 crore, Swiggy is gearing up to expand its infrastructure, upgrade its technology, and market itself aggressively against competitors like Zomato and Zepto.

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