-KH News Desk (editorial1@imaws.org)
Swiggy on Friday said its board has approved the raising of funds upto ₹10,000 crore in one or more tranches through the Qualified Institutional Placement (QIP) route or any other permitted modes, as it seeks to bolster growth capital in a competitive environment.
In a regulatory filing, Swiggy informed that its board of directors at its meeting held on November 7 has “approved the raising of funds by way of public or private offerings including, through one or more tranches, by way of QIP or any other permitted modes … to the eligible investors as may be permitted, for an aggregate amount of upto ₹10,000 crore, subject to the receipt of necessary approvals”.
Swiggy, which owns food delivery and quick commerce businesses, had recently said the external environment is competitive and dynamic, and hence the company’s board will consider raising additional funds.
“With the current cash balance to be further bolstered by the ₹2,400 crore Rapido divestment, we feel comfortable about our overall balance sheet strength, and are well-funded for our growth ambitions,” Swiggy said in a letter to shareholders on October 30 post declaring its second quarter results.
“However, the external competitive environment is dynamic, and legacy and new players continue to attract investments to the sector. This has necessitated a conversation with the board to consider additional fundraising, which will give us access to sufficient growth capital while enhancing our strategic flexibility,” it added.
