The founder of First Global Devina Mehra raised questions over Swiggy’s recent funding needs following the company’s initial public offering, noting its struggle with losses and frequent capital needs. She pointed out that the food delivery giant raised ₹4,500 crore in IPO, yet now it wants ₹10,000 crore more.
In a post on the social media platform X, Devina Mehra wrote, “Swiggy management has just discovered that it is an environment which is ‘competitive and dynamic’… And hence surprise surprise it needs more money. It had an IPO almost exactly a year ago where about ₹ 4500 crores came into the company and there was an offer for sale for ₹ 6800 crores plus. Now it needs 10,000 crores more!!”
Mehra’s reaction comes after the food delivery and quick commerce firm’s board of directors approved their plans to fundraise ₹10,000 crore through one or more qualified institutions placement (QIPs), according to an exchange filing on 7 November 2025.
Highlighting a broader trend of raising funds, she noted, “Money raised in an IPO was supposed to come into the company unless it genuinely did not require more capital for growth. Now the public markets mostly provide an exit for promoters and earlier round investors.”
What is the impact of frequent fund raises?
Mehra flagged that too many fundraises were looked at negatively because they diluted the return on capital. Reflecting on the company’s financial performance, she noted, “But I suppose when you are making losses at the rate of ₹1,100 crores a quarter, there is anyway no return on capital to dilute. Just as a lack of earnings in many such ‘new age tech’ companies means the P/E (price to earnings ratio) is never too high.”
The P/E ratio determines the current price of a company’s share in relation to its earnings per share (EPS). This ratio can be analysed for different periods; however, in most cases, a time period of 12 months is considered. A high P/E ratio means investors are willing to pay more for the company’s earnings.
She further raised concerns over valuation methods of companies and said, “A friendly reminder that there is only one way to value a company and fancy new valuation ratios & parameters are used only to justify a valuation, not to do a valuation.”
Swiggy financials
In the September quarter of this fiscal, Swiggy’s consolidated net loss widened to ₹1,092 crore from ₹626 crores in the year ago period. The company posted a net loss of ₹1,197 crore in the quarter ended June 2025.
The food delivery giant’s consolidated revenues rose 54.4% to ₹5,562 crore in the second quarter of the 2025-26 fiscal year from ₹3,601 crore in the same period a year ago, as Mint reported earlier.
Swiggy’s market capitalisation (M-Cap) stood at more than ₹1 trillion as of the stock market close on Friday, 7 November 2025.
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