Swiggy to shore up Instamart cash buffer as Q2 loss widens

Swiggy reported another unprofitable quarter this fiscal, weighed down by higher spending on its quick commerce arm Instamart, highlighting the tough road to profitability in rapid delivery.

- Vaishnavi Kasthuril [e-mail]

Swiggy's Q2 loss widened to ₹1,092 cr from ₹626 cr a year earlier, mainly due to higher spending on its quick commerce arm. REUTERS

(REUTERS)

Its net loss rose to ₹1,092 crore against ₹626 crore in the year-ago period. Its operating revenue was at ₹5,561 crore, up 54.4% year-on-year, surpassing ₹5,280 crore estimate of analysts surveyed by Bloomberg.

The firm is mulling raising up to ₹10,000 crore through a qualified institutional placement (QIP) and other permissible routes to fortify balance sheet and maintain flexibility in India’s fiercely competitive quick commerce market. This comes almost a year after listed rival Eternal Ltd raised ₹8,500 crore via QIP, and about two weeks after Zepto raised $450 million in private capital from California Public Employees’ Retirement System.