News on Medial

Swiggy to invest Rs 1,000 Cr in subsidiary Scootsy for biz expansion

Entrackr · 1d

Swiggy to invest Rs 1,000 Cr in subsidiary Scootsy for biz expansion Food delivery and quick-commerce platform Swiggy Limited has announced an investment of up to Rs 1,000 crore (approximately $117 million) in its wholly owned subsidiary, Scootsy Logistics, to support business expansion and operational growth. The decision was approved at a board meeting held on February 21, 2025, where Swiggy outlined its plan to invest the amount in one or more tranches through a rights issue, as stated in its stock exchange filing. Swiggy confirmed that the investment will be made through cash consideration, with shares priced at Rs 7,640 per share, including a premium of Rs 7,630 per share. The funds will primarily be used for working capital and other capital expenditures to strengthen the company's logistics and supply chain operations. Scootsy Logistics specializes in supply chain services and distribution, including warehouse management, order fulfillment, and last-mile delivery solutions. The company has experienced significant revenue growth over the past three years, reporting a turnover of Rs 5,795.7 crore in FY24, compared to Rs 3,686.2 crore in FY23 and Rs 1,580.3 crore in FY22. In Q3 FY25, Scootsy contributed 42% of Swiggy’s overall operating revenue. Income from this entity increased by 23% QoQ to Rs 1,692 crore in Q3 FY25 from Rs 1,377 crore in Q3 FY24. Despite the investment, there will be no change in Swiggy’s shareholding in Scootsy, and the subsidiary will continue to operate under its existing structure. Swiggy expects this investment to enhance scalability, improve delivery operations, and strengthen its competitive edge in the market.