2 weeks Ago By Pawan Kumar
New Delhi: Swiggy, the popular food and grocery delivery platform, is reshaping its strategy ahead of its Rs 11,300 crore Initial Public Offering (IPO). The company has submitted its Red Herring Prospectus (RHP) to the Securities and Exchange Board of India (SEBI), with a stronger focus on quick commerce. Swiggy IPO: FundraiseAs part of its IPO plans, Swiggy has increased its target for fresh capital issuance from Rs 3,750 crore to Rs 4,499 crore.
A significant portion of this new investment—Rs 1,179 crore, which is 20 per cent more than initially planned—will be allocated to Instamart, Swiggy's quick commerce arm. This strategic shift highlights the company’s intention to capture a larger share of the fast-growing market for ultra-fast deliveries in India, where internet-savvy consumers are increasingly turning to online platforms for essentials. Competition Between Quick Commerce CompaniesSwiggy faces stiff competition from Zepto, Blinkit, and Reliance in the race for quick deliveries.
Zepto, which operates more than 500 dark stores, recently secured $150 million in fresh funding. Meanwhile, Mukesh Ambani's Reliance is also entering the quick commerce space, aiming to convert its extensive network of supermarkets into hubs for 10–30 minute deliveries. The growing competition will push players like Swiggy to expand aggressively to maintain market share.
Why There Is So Competition In Quick Commerce Space?Quick commerce, which ensures delivery of groceries and daily essentials within minutes, has become an important part of India’s retail ecosystem. The segment gained momentum during the COVID-19 pandemic, and consumers now expect ultra-fast deliveries as a standard service, especially in urban areas. With increasing demand, quick commerce is becoming a key battleground for companies operating in India’s evolving retail market.
What Is Swiggy Plan?To meet these growing expectations, Swiggy is focusing on expanding its network of dark stores -warehouses that handle online orders efficiently. According to the RHP, Swiggy plans to invest Rs 755.4 crore in expanding dark stores and Rs 423.
3 crore in leasing and licensing facilities. This will increase Swiggy’s total dark store count to 741, covering 2.59 million square feet.
Currently, the company operates 605 active dark stores, with plans for further growth to enhance delivery times and reach. In comparison, Blinkit has expanded to 791 dark stores, putting pressure on Swiggy to keep up. These dark stores allow Swiggy to stock high-demand items near customer locations, ensuring delivery within 10–20 minutes.
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