Swiggy has obtained approval from the Ministry of Corporate Affairs (MCA) to establish Swiggy Sports Pvt. Ltd., a fully owned subsidiary of Swiggy. This marks a significant step in the company’s strategy to expand beyond its core food and grocery delivery services. During the earnings call for July to September, the foodtech leader announced the formation of Swiggy Sports, which will manage the pickleball team acquired in November 2023.
According to a stock exchange filing, the new entity will focus on several key objectives, including:
- Ownership and management of sports teams
- Talent development
- Event organisation
- Facility operations
- Career services
- Acquisition of broadcasting and sponsorship rights
- Promotion of sports events using diverse business models
In November, Swiggy acquired Team Mumbai—co-founded by former Indian tennis players Gaurav Natekar and Arati Ponnappa Natekar—participating in the World Pickleball League (WPBL), which is India’s first global franchise-based pickleball league. The inaugural season is scheduled to take place from January 24 to February 2, 2025.
In contrast, Swiggy’s competitor, Zomato, unveiled its District venture in August of last year to streamline its dining and ticketing services after acquiring Paytm’s events ticketing division for Rs 2,048.4 crore.
The roadmap for Swiggy’s sports division remains unclear, as the company has not communicated how it plans to expand this sector. Rohit Kapoor, CEO of Swiggy’s food marketplace, mentioned to analysts in December that Swiggy would not be entering the sports market in a substantial manner. However, it was stated that Swiggy’s entry into this area could signify a considerable market shift, given the rapid growth of pickleball across various demographics. The popularity of the sport in tier-1 cities is now beginning to influence smaller towns, which are incorporating the game into their activities. Presently, the segment is characterised by fragmentation with numerous operators, and the involvement of a prominent player like Swiggy could help to regularise the industry’s operations, according to Sumant Pradhan, a dedicated pickleball enthusiast and senior aviation executive.
In the second quarter of FY25, Swiggy reported a decrease in losses by nearly 5% year-on-year (YoY), amounting to Rs 625.53 crore. Additionally, its operating revenue surged by 30% YoY to reach Rs 3,601.45 crore during the same quarter.