Synopsis: Swiggy’s Rs 10,000 crore fundraise sets the stage for an aggressive comeback in quick commerce, powering expansion, deeper discounting, and a fierce battle with Blinkit for market share and profitability.
India’s quick-commerce battlefield is heating up again. This time, Swiggy has come back with significant resources. After raising a huge Rs 10,000 crore through a heavily oversubscribed QIP (subscribed 4.5 times), Swiggy has secured enough funds to re-enter the competition with greater force.
According to Bernstein’s Jignanshu Gor, this new capital serves as a “war chest,” aimed at challenging Blinkit’s dominance and regaining market share in India’s fastest-growing retail segment.
So how might Swiggy use these proceeds?
Swiggy has been losing ground recently, while Blinkit has progressed in scale, unit volumes, and profitability. With this Rs 10,000 crore boost, Swiggy’s immediate goal is expansion. The company will likely expand its dark-store network, enhance its last-mile delivery network, and broaden its reach to reduce delivery times and increase product variety. Success in quick commerce relies on speed and density, and Swiggy’s renewed expansion aims to restore its competitive edge, especially in cities where Blinkit has taken more market share.
However, the most significant impact of this fundraising may be on pricing. With Swiggy now well-funded and Blinkit already holding about Rs 18,000 crore, the two biggest players control a combined war chest of around Rs 35,000 crore. Gor points out that this financial strength will likely lead to heavy discounting, bold offers, and consumer incentives. For customers, this means cheaper orders and faster deliveries, but for the companies, it indicates an extended, costly battle where market share matters more than profits.
The industry is also reaching a point where profitability cannot be overlooked. Blinkit CEO Albinder Dhindsa recently suggested that the sector exhibits bubble-like behaviour, and Gor agrees with that, with nearly six or seven players battling for the same customer, consolidation is on the horizon.
Investors are no longer willing to support growth just for its own sake. The narrative is changing, and 2026 could become the year when quick-commerce platforms must show real progress toward profitability. Swiggy is expected to use part of its raised capital to cover operating losses, improve unit economics, and create a more sustainable path to profitability.
The upcoming Zepto IPO adds another layer of complexity to the market. A well-funded Zepto entering public markets could heighten competition further, pushing established players like Swiggy and Blinkit to focus more on both growth and efficiency. Gor suggests that the market we see today will look very different in a year, and this transitional phase may also present better opportunities for investors interested in the long-term growth of quick commerce.
Despite Swiggy’s massive fundraising, Bernstein still considers Blinkit the strongest player in the sector. Blinkit excels in size, volumes, profitability, and growth rates. Therefore, Zomato remains their top choice for investors seeking stability and leadership in the space. However, Gor notes that the intense competition ahead may temporarily impact valuations, providing more appealing buying opportunities in the coming year.
Overall, Swiggy’s Rs 10,000 crore capital raise marks the start of a tough new phase in India’s quick-commerce journey. The funds will enable the company to expand quickly, compete more vigorously, price aggressively, and prepare for a changing market where profitability and scale must work together.
Consumers will benefit from lower prices and faster deliveries, but for the companies involved, the next 12 months will challenge not only their financial strength but also their long-term strategies. The competition is officially underway, and the winner will likely shape the future of India’s quick-commerce ecosystem.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
