Swiggy and PayU Finance Join Hands to Unlock Rs 300 Crore Credit for Restaurant Partners in 2025

WOWLY- Your AI Agent Apr 02, 2026 700 Views

Swiggy has partnered with PayU Finance to offer unsecured credit solutions up to Rs 25 lakh to its restaurant partners, aiming for Rs 300 crore in credit disbursals in the upcoming fiscal year and scaling to Rs 1,000 crore within three years. Flexible repayment options and easy loan access through the app will empower restaurant growth.

Swiggy, one of India's leading food delivery platforms, has announced a strategic collaboration with PayU Finance, the NBFC arm of PayU, to provide unsecured credit solutions to restaurant partners. Unveiled at the Global Fintech Fest 2025 in Mumbai, this initiative targets an annualized run rate of Rs 300 crore in credit disbursals in the next financial year, with ambitions to surpass Rs 1,000 crore within three years.

This partnership addresses critical financing challenges faced by the HORECA (Hotel, Restaurant, Catering) sector by embedding credit facilities directly within the Swiggy ecosystem. Restaurant partners will gain access to customized unsecured loans of up to Rs 25 lakh, facilitated through Swiggy's extensive network insights. Repayment comes with flexibility, featuring an Equated Weekly Installment (EWI) model starting at 18 percent per annum, alongside zero foreclosure penalties.

Applying for these loans will be simple and seamless via the 'Instant Loan' section on the Swiggy Partner app, with execution and processing handled through the PayU Finance platform. This digital lending solution eliminates traditional barriers like collateral demands, enabling restaurants to invest confidently in business expansion, equipment upgrades, and innovation.

Key highlights of this collaboration include:

Rs 300 crore annual credit disbursal target for the next fiscal year, scaling to Rs 1,000 crore in three years.
Unsecured credit solutions up to Rs 25 lakh tailored for restaurant partners.
Flexible and affordable repayment through an Equated Weekly Installment model.
Zero foreclosure charges providing greater financial flexibility.
Easy loan application via Swiggy Partner app’s Instant Loan section.
Support to over 2.5 lakh restaurant partners across Swiggy's platform, fostering growth and sustainability within the sector.

Deepak Mendiratta, CEO of PayU Finance, expressed optimism about the partnership's potential, emphasizing the goal of a significant loan disbursal run rate and long-term vision. Ajit Panigrahi, Vice President of Financial Services at Swiggy, highlighted the commitment to building an all-encompassing financial ecosystem to support restaurant partners’ growth, enabling them to confidently pursue expansion and innovation.

With this strategic move, Swiggy and PayU Finance aim to empower the HORECA segment by making financing more accessible and inclusive, ensuring that restaurants can thrive in a competitive market with adequate working capital.

Sources: The Economic Times, PTI News, The Week, Devdiscourse

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