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Swiggy’s qualified institutional placement (QIP), where it plans to raise as much as Rs 10,000 crore (around $1.2 billion), has drawn over 4X demand from India’s top mutual funds, including State Bank of India (SBI) mutual fund, ICICI Prudential MF, HDFC MF, Kotak Mahindra MF, people familiar with the developments told Moneycontrol.
A slew of other large foreign institutional investors (FIIs) including Singapore’s Temasek and GIC, have submitted bids to invest in the food and grocery tech company. “Japan’s Nomura is also in the fray and is likely to invest in Swiggy via its QIP too,” one of the persons cited above said.
“Of the $1.2 billion, about $1 billion (Rs 8,800 crore) will come from domestic MFs and the remaining $200 million or so will come from FIIs,” the person added.
A demand for a Rs 10,000 crore QIP translates to Swiggy receiving bids worth Rs 40,000 crore from the top four mutual funds in India, and other investors including large foreign institutional investors (FIIs) and more.
Swiggy, SBI, Kotak, HDFC, ICICI, Temasek, GIC and Nomura did not immediately respond to queries.
Interestingly, Temasek, an early backer of Eternal (formerly Zomato), is now looking to bet on Swiggy.
MFs across the board have been subscribing to a growing number of new-age tech IPOs. Moneycontrol had earlier reported companies like Groww and Meesho had also seen strong demand from MFs during their IPOs.
Swiggy is raising a fresh round of funds, to the tune of Rs 10,000 crore, via a QIP just over a year after it raised Rs 11,327 crore via an initial public offering (IPO) in November 2024.
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The company is on a back-to-back fundraising spree as it looks to up the ante in the quick commerce sector. In fact, nearly half of Swiggy’s QIP proceeds will be used to expand Instamart, Swiggy’s rapid delivery arm, Moneycontrol had reported earlier.
Swiggy on December 9 announced that it has fixed the floor price at Rs 390.51 per equity share for its QIP. The share was changing hands at Rs 402 apiece on the BSE at 10:25 am on December 10.
How will Swiggy deploy the QIP money?
The largest portion of the QIP proceeds—Rs 4,475 crore—will be deployed towards expanding and operating Swiggy’s quick-commerce fulfilment network, including dark stores and warehouses that power Instamart.
Swiggy plans to expand its fulfilment footprint from 5 million square feet as of November 30, 2025, to about 6.7 million square feet by December 2028.
Another Rs 985 crore has been earmarked for technology and cloud infrastructure. The filing notes that Swiggy’s current cloud services agreement expires in February 2026, and that the company has entered into a non-binding letter of intent involving a proposed cloud commitment of Rs 1,820 crore over six years, locking in a significant forward technology spend.
Swiggy has also allocated Rs 2,340 crore towards brand marketing and business promotion. The company disclosed that it has already issued purchase orders worth Rs 1,961 crore to marketing agencies for the December 2025–November 2027 period, pointing to sustained high customer acquisition and brand-building spends over the next two years.
Up to 25 percent of the gross proceeds may be used for inorganic growth and general corporate purposes. While no fresh acquisition targets have been identified yet, the company cited past acquisitions such as Dineout and Lynks Logistics as examples of strategic expansion. Pending deployment, surplus funds will be parked in debt mutual funds, government securities and bank deposits, and CRISIL Ratings has been appointed as the monitoring agency to track utilisation on a quarterly basis.