A clutch of investment firms including GIC, Temasek and Nomura have put in a bid to acquire a position in Swiggy’s qualified institutional placement (QIP) through which the food delivery platform plans to raise $1.3 billion, or about ₹10,000 crore, three people familiar with the matter said.
“The QIP has already drawn nearly 4.5x demand from top mutual funds including Kotak, SBI, ICICI, HDFC, Nippon, Axis, and Mirae,” a person familiar with the matter said.
“Temasek could invest anywhere between $100-150 million and the allotment could happen in the next two hours,” said a second person. “While high quality FIIs have put in bids, the company is expected to give higher weightage to domestic funds.”
All three people spoke on the condition of anonymity. Temasek declined comment while others did not immediately respond to Mint’s requests for comment.
Swiggy plans to use the funds raised towards expanding and operating its quick-commerce fulfilment network, including dark stores and warehouses that power Instamart, enhance its fulfillment footprint, and expand its cloud and technology infrastructure.
Swiggy’s fundraising plans come as India’s instant-commerce sector rapidly expands amid surging demand and intensifying competition. Startups are competing with Amazon and Walmart-backed Flipkart to cover cities with networks of neighborhood warehouses and fleets to quickly deliver everything from groceries to electronics.
