Food delivery giant Swiggy is reportedly preparing to raise ₹10,000 crore ($1.2 billion) in fresh funding as it readies for a highly anticipated IPO in 2025, sources familiar with the matter told Reuters and ET Now.
The new round of investment aims to bolster operations, improve profitability, and expand into new service verticals, including quick commerce and grocery delivery under the Instamart brand.
“This funding will help Swiggy maintain momentum ahead of its public debut and reinforce its competitive edge against Zomato,” said a venture capital analyst tracking the Indian food-tech sector.
IPO Momentum and Market Dynamics
Swiggy’s planned fundraising comes amid renewed investor interest in India’s consumer tech and delivery startups, which have shown signs of recovery despite macroeconomic headwinds.
The company has already filed confidential draft documents with SEBI and is expected to launch its IPO in mid-2025, seeking a valuation in the $12–14 billion range.
Insiders say the funds will primarily go toward technology upgrades, AI-driven logistics optimization, and expanding Swiggy Genie and Instamart into Tier-2 and Tier-3 cities.
“We aim to deliver sustainable growth while maintaining our leadership in convenience commerce,” a Swiggy spokesperson said in a statement.
Zomato Rivalry and Sector Outlook
Swiggy’s renewed push intensifies its rivalry with Zomato, which has seen strong stock performance in 2025 driven by its quick-commerce platform, Blinkit.
Analysts suggest the fresh capital could give Swiggy the flexibility to aggressively price services, acquire smaller players, and expand globally in select markets.
“Swiggy’s pre-IPO strategy is a textbook case of market consolidation before listing,” said Arvind Menon, a startup investment consultant. “It shows confidence in long-term sector growth.”
