Swiggy has lined up “dark store” expansion as it looks to ramp up its quick commerce business.

The company’s top officials were in the city on Thursday to drum up
interest in the IPO which has garnered bids for 35 per cent on the second day as per BSE data. The issue will close on Wednesday and the final bids could improve with HNIs and institutional investors’ participation.

The company in its red herring prospectus has said that it plans to open dark stores — large retail facilities resembling conventional supermarkets but not open to the public — both in cities where it currently operates as well as new cities.

“We are entering new cities and we need to set up dark stores. So some parts of the expansion are purely geographic. But within the city where we are present, we are also trying to cover all the fringe areas,” Rohit Kapoor, CEO, Swiggy said.

Swiggy’s dark store infrastructure has grown significantly since the start of the quick commerce business in 2020 and as of June 30, 2024, the company had a total of 581 open dark stores spread across 32 cities.

The food delivery and quick commerce firm is looking to open 741 dark
stores between FY25 and FY28 as per the RHP, earmarking ₹755.4 crore out of its
IPO proceeds towards the expansion.