As Mukesh Ambani led Reliance is expanding in the quick commerce segment and already there is competition from Zepto and Blinkit, Swiggy has changed its strategy of using IPO raised funds.
As Swiggy, India’s popular food and grocery delivery service, prepares for its Initial Public Offering (IPO), it has restructured its strategy to prioritize quick commerce, targeting a surge in digital infrastructure and consumer demand across India.
In Swiggy’s recent filing with the SEBI, it disclosed its commitment to fast deliveries through its Instamart division. Swiggy’s Rs 11,300 crore IPO, highlights a significant move in a rapidly evolving retail landscape, where the company competes with industry players like Blinkit, Zepto, and now, Mukesh Ambani’s Reliance.
Swiggy’s IPO Plan
Swiggy’s IPO filing shows an increase in primary fundraising, with new share issuance rising from Rs 3,750 crore to Rs 4,499 crore. This capital boost will support Swiggy’s expanded quick commerce goals, with Rs 1,179 crore kept for Instamart, up by 20% from earlier plans.
By reinforcing Instamart, Swiggy is positioning itself to capture a larger share of India’s surging quick commerce sector, where internet access and smartphone adoption are making online shopping a mainstream activity across the country. Notably, even Reliance, led by billionaire Mukesh Ambani, is eyeing this high-growth market, stepping up the competitive landscape.
Mukesh Ambani’s Entry In Quick Commerce
Reliance’s recent entry into the quick commerce segment has intensified the competition. Using its extensive supermarket network, Reliance is setting up hubs capable of meeting the 10–30 minute delivery promise, similar to the swift service standards established by Swiggy and Blinkit. Zepto, a rival player with over 500 dark stores, recently secured $150 million in additional funding, showing investors confidence in the sector. Reliance’s entry further intensifies the race, and Swiggy’s increased investment in quick commerce reflects a proactive approach to stay ahead in this competitive environment.
Swiggy Expands Dark Store Network
Swiggy’s strategy centers on expanding its dark store network, facilities designed exclusively for processing online orders quickly. According to its red herring prospectus (RHP), Swiggy will allocate Rs 755.4 crore to increase the number of dark stores and Rs 423.3 crore to lease and license new spaces. This investment aims to elevate Swiggy’s dark store count to 741, with a total area of approximately 2.59 million square feet. Blinkit, by comparison, recently grew its dark store count to 791, indicating fierce competition in establishing local fulfillment networks to meet the growing demand.