FILE PHOTO: Managing Director and Group Chief Executive Officer of Swiggy, Sriharsha Majety gives a replica of a Swiggy delivery bag to Managing Director and CEO of National Stock Exchange of India Ashishkumar Chauhan ahead of the listing ceremony of its Initial Public Offering (IPO) at the National Stock Exchange (NSE) in Mumbai, India, November 13, 2024. REUTERS/Francis Mascarenhas/File Photo
(Reuters) -Indian food and grocery delivery firm Swiggy on Friday said its board approved plans to raise up to 100 billion rupees($1.14 billion) via qualified institutional placement (QIP) as it seeks to shore up capital for growth.
Companies use the QIP route to raise funds from large institutions such as mutual funds.
Loss-making Swiggy and its quick commerce rivals, Eternal's Blinkit and start-up Zepto, have been spending heavily on warehouses and customer acquisition as they seek to raise market share in one of India's fastest-growing industries.
The company had said on October 30 that the fundraise would bolster cash reserves, helping drive growth as well as fund "new experiments" in quick commerce and food delivery.
In September, Swiggy sold its entire stake in ride-hailing platform Rapido for about $270 million, further strengthening its balance sheet. It has also slowed down the pace of warehouse expansion to improve margins.
($1 = 87.8950 Indian rupees)
(Reporting by Ananta Agarwal in Bengaluru; Editing by Janane Venkatraman)
