Swiggy Limited Invests in Scootsy Logistics for Growth

Swiggy Limited has made a significant decision to invest up to Rs 1,000 crore (around $117 million) in its wholly owned subsidiary, Scootsy Logistics. This investment aims to support business expansion and enhance operational capabilities.

The board meeting on February 21, 2025, granted approval for this investment, where Swiggy detailed its strategy to invest the capital in one or more phases via a rights issue. This information was disclosed in a stock exchange filing.

Swiggy confirmed that this substantial investment will be executed through cash consideration, with shares valued at Rs 7,640 each, which includes a premium of Rs 7,630 per share.

The primary objective for these funds will be to bolster working capital and cater to various capital expenditures, aimed at fortifying the company’s logistics and supply chain functionalities.

Scootsy Logistics and Its Significance

Scootsy Logistics is focused on supply chain and distribution services, encompassing warehouse management, order fulfillment, and last-mile delivery solutions. The company has witnessed remarkable revenue growth in the last three years, boasting a turnover of Rs 5,795.7 crore in FY24, an increase from Rs 3,686.2 crore in FY23, and a substantial rise from Rs 1,580.3 crore in FY22.

Financial Performance in Q3 FY25

In the third quarter of FY25, Scootsy accounted for 42% of Swiggy’s total operating revenue. The income generated by this subsidiary increased by 23% quarter-on-quarter, rising to Rs 1,692 crore in Q3 FY25 from Rs 1,377 crore in Q3 FY24.

Despite this new investment, there will be no alteration in Swiggy’s holdings in Scootsy, and the subsidiary will maintain its current operational framework. Swiggy is optimistic that this strategic investment will enhance scalability, optimise delivery processes, and fortify its competitive stance within the industry.