SBI Mutual Fund has boosted its investment in Swiggy by acquiring 1.18 crore equity shares worth over ₹300 crore, increasing its shareholding to 5.1%. This move supports Swiggy’s efforts to scale its quick-commerce business with a new inventory-led model.
- SBI Mutual Fund’s stake in Swiggy rises to over 5% following ₹300 crore buy
- Swiggy shifts Instamart to an inventory-led model post foreign ownership cap
- Swiggy posts 37% revenue growth and narrows Q1 FY27 losses by 34%
What happened
SBI Mutual Fund purchased an additional 1.18 crore equity shares of Swiggy via open market transactions. This acquisition raised the fund’s total shareholding to approximately 14.16 crore shares, representing 5.1% of Swiggy's equity. The transactions, valued at over ₹300 crore based on the stock’s closing price, breached the 5% ownership threshold set by SEBI, triggering mandatory disclosure requirements.
Why it matters
The increased stake by SBI Mutual Fund signals strong institutional confidence in Swiggy’s growth prospects amid strategic changes in its quick-commerce segment. Swiggy plans to transition its Instamart service from a marketplace model to an inventory-led model, enabling it to directly source products from brands. This shift is expected to improve revenue and profit margins significantly.
This strategic pivot aligns with Swiggy’s foreign ownership cap, facilitating better operational control as the company focuses on profitability. In Q1 FY27, Swiggy reported a 36.8% rise in operating revenue to ₹6,812 crore and a 34% reduction in net losses to ₹791 crore, marking progress towards sustainable growth and margin improvements.
What to watch next
Investors and market watchers will be closely monitoring how Swiggy’s inventory-led Instamart model impacts its financial performance and market share in the quick-commerce sector. The transition may enhance margins, potentially generating an estimated 80 basis points upside in profitability, according to broker Jefferies.
Additionally, developments around ownership structure and competitive positioning relative to peers like Eternal—who also implemented a similar quick-commerce restructuring—will be important. Continued domestic mutual fund interest and Swiggy’s ability to sustain revenue growth while reducing losses will remain key indicators of its long-term valuation and operational health.