Swiggy has detailed how it plans to use its Rs 10000 crore qualified institutional placement proceeds, marking one of its biggest growth phases yet. The company’s latest filing on December 9 shows that nearly half of this capital will be directed toward scaling its quick commerce operations at a time when competition and questions about sustainability are increasing.
The filing shows that Rs 4475 crore will be invested in expanding and operating the quick commerce fulfilment network, which includes dark stores and warehouses supporting Instamart. Swiggy aims to increase its fulfilment area from 5 million square feet as of November 30, 2025 to about 6.7 million square feet by December 2028. Most of this expansion is planned for FY27 and FY28, suggesting the most aggressive growth period is still ahead.
Swiggy fixed the QIP floor price at Rs 390.51 per share, slightly above the previous closing price of Rs 385.9. The announcement and shareholder approval pushed Swiggy shares up by more than 3 percent, closing at Rs 397.70.
Another Rs 985 crore will support technology and cloud infrastructure. Swiggy’s current cloud services agreement ends in February 2026, and it has signed a non binding letter of intent that involves a proposed cloud commitment of Rs 1820 crore over six years.
The company has set aside Rs 2340 crore for brand marketing and business promotion. It has already issued purchase orders worth Rs 1961 crore for the period between December 2025 and November 2027, reflecting strong spending plans for customer acquisition and brand building.
Up to 25 percent of the gross proceeds may be used for inorganic growth and general corporate needs. While Swiggy has not identified new acquisition targets, it referenced previous acquisitions such as Dineout and Lynks Logistics. Surplus funds will be held in debt mutual funds, government securities and bank deposits, and CRISIL Ratings will monitor utilisation each quarter.
The filing also highlights risks such as rapid dark store expansion leading to high rentals, inventory challenges and pressure on last mile delivery. Any supply and demand mismatch could affect unit economics. It notes Swiggy’s heavy reliance on third party cloud providers, with no confirmed agreement after February 2026, which could affect operating costs and platform stability.
The broader quick commerce market is also in an intense expansion phase. Blinkit recently raised Rs 600 crore, taking its total funding this year to Rs 2100 crore, while Zepto secured 450 million dollars. However, concerns are rising, with industry leaders warning of a possible shake out as losses grow and investor scrutiny increases.
Swiggy’s deployment of QIP funds will be closely watched over the next few quarters, as its strategy could influence the future direction of India’s quick commerce sector.
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