Swiggy has announced its expectation to achieve zero contribution margin by Q1 2024, marking a significant milestone in the company's journey towards profitability amid intensifying competition in the food delivery sector.

Strategic Financial Targets

The food delivery platform has set clear financial objectives as it navigates the challenging market landscape. The company's focus on reaching zero contribution margin represents a critical step in its path to sustainable operations.

Corporate Structure Evolution

Swiggy is actively working towards establishing an IOCC (Indian Overseas Corporate Center) structure, which could provide operational and strategic advantages. This structural transformation aligns with the company's broader organizational goals and international expansion considerations.

Shareholder Dynamics

The company's shareholder base is approaching majority status, indicating significant changes in ownership structure. This development could influence future strategic decisions and corporate governance frameworks.

Market Competition Impact

The competitive landscape continues to present challenges for Swiggy as it works towards its financial targets. The company's focus on achieving zero contribution margin reflects the need to optimize operations while maintaining market position in the highly contested food delivery and quick commerce segments.

Swiggy Limited has submitted its quarterly monitoring agency reports for the quarter ended December 31, 2025, detailing the utilization of proceeds from both its Initial Public Offer (IPO) and Qualified Institutional Placement (QIP). The reports, prepared by CRISIL Ratings Limited as the monitoring agency, were reviewed by the company's Audit Committee and approved by the Board on January 29, 2026.

IPO Proceeds Utilization Status

The IPO monitoring report reveals significant progress in fund deployment across various strategic objectives. During Q3FY26, the company utilized Rs 4,909.05 million, bringing the cumulative utilization to Rs 33,430.23 million from the total gross proceeds of Rs 44,990.00 million.

The company has fully utilized the allocated funds for debt repayment in its material subsidiary Scootsy, while other objectives show varying degrees of progress. The monitoring agency noted that Rs 6,283.53 million was transferred from monitoring accounts to various current accounts for operational ease.

QIP Proceeds Deployment

The QIP, which raised Rs 1,00,000.00 million through the issuance of 26,66,66,663 equity shares during December 9-12, 2025, shows minimal utilization in its initial quarter. Only Rs 1,195.38 million was utilized during Q3FY26, primarily for general corporate purposes.

The utilized amount was allocated toward administrative expenses (Rs 747.96 million) and meeting expenses in the ordinary course of business (Rs 447.42 million).

Fund Deployment Strategy

Unutilized proceeds from both offerings are strategically deployed across various investment instruments to generate returns while maintaining liquidity. The IPO proceeds totaling Rs 11,772.82 million are invested in:

• Fixed Deposits: Multiple deposits with HDFC Bank, Axis Bank, ICICI Bank, and HSBC Bank offering returns between 5.05% to 7.50%
• Current Account Balances: Maintained across various banks for operational requirements

The QIP proceeds of Rs 98,804.61 million are diversified across:

• Fixed Deposits: Rs 38,000.00 million in deposits with HDFC Bank and Axis Bank
• Corporate Deposits: Rs 13,875.00 million with Shriram Finance, Bajaj Finance, and Mahindra Financial Services
• Bonds/NCDs: Rs 14,455.57 million in instruments from various financial institutions
• Mutual Funds: Rs 31,782.62 million across liquid and low-duration funds

Regulatory Compliance and Monitoring

Both reports confirm no deviations from the objects disclosed in the respective offer documents. The monitoring agency verified that all utilizations align with the stated purposes, with no material deviations requiring shareholder approval. The company has maintained proper documentation through peer-reviewed independent chartered accountant certificates from M/s Manian & Rao.

Investment Returns and Performance

The deployment strategy has generated earnings of Rs 577.15 million on IPO proceeds and Rs 255.32 million on QIP proceeds as of December 31, 2025. The diversified investment approach across fixed deposits, corporate deposits, bonds, and mutual funds provides a balanced risk-return profile while ensuring fund availability for planned business objectives.

The reports demonstrate Swiggy's systematic approach to capital deployment, with the IPO proceeds showing active utilization across expansion and technology initiatives, while QIP proceeds remain largely available for future strategic investments in quick commerce infrastructure and market expansion activities.