Swiggy to invest Rs 1K crore in Scootsy Logistics in one or more tranches

This investment is for working capital and other capital expenditures as part of the company's business expansion, said the food and grocery delivery firm

Food and grocery delivery firm Swiggy Ltd said on Friday that it will invest up to Rs 1,000 crore in Scootsy Logistics in one or more tranches.

 

Scootsy is currently engaged in the business of supply chain services and distribution.

 

The services include warehouse management to streamline operations, in-warehouse processing with value-added services to enhance product delivery, and efficient order fulfilment, enabling effective order picking, packing, and shipping for wholesalers and retailers.

 

"We wish to inform that the Board of Directors of the company, at its meeting held on Friday, February 21, 2025, has approved the investment by the company in the equity shares of Scootsy Logistics Private Limited, a wholly owned subsidiary of the company ('Scootsy'), up to an amount not exceeding Rs 1,000 crore in one or more tranches by way of subscription to a rights issue. The investment will be utilised for working capital and other capital expenditures as part of the company's business expansion," Swiggy said in a stock exchange filing.

 

Scootsy, being a wholly owned subsidiary, is a related party of the company. The transaction falls within the ambit of related party transactions and is at arm’s length.

 

"Except for the shares held by the company in Scootsy, the company has no interest in Scootsy," Swiggy said. "This investment is for working capital and other capital expenditures as part of the company's business expansion."

 

There will be no change in Swiggy’s shareholding in Scootsy, which will continue to remain a wholly owned subsidiary of the company.

 

The turnover of Scootsy for the financial year ended March 31, 2024, was Rs 5,195.7 crore.

 

Scootsy was incorporated under the Companies Act, 2013, on November 27, 2014. It recorded a turnover of Rs 5,796 crore in FY24, Rs 3,686 crore in FY23, and Rs 1,580 crore in FY22.

 

Swiggy recently reported a widening of its consolidated net loss to Rs 799 crore for the third quarter of FY25 (Q3FY25) from Rs 574.4 crore in the year-ago period, a decline the food and grocery delivery platform attributed to a rise in capital expenditure (capex) on warehousing and dark store infrastructure.

 

It was Swiggy’s second quarterly result since its stock market debut in November 2024.

 

The company’s consolidated revenue from operations grew 31 per cent Y-o-Y to Rs 3,993 crore, up from Rs 3,049 crore in Q3FY24. Swiggy’s consolidated total income also rose 30.8 per cent to Rs 4,095.8 crore in Q3FY25, compared to Rs 3,130.9 crore in Q3FY24.

 

The firm had told the regulator that it expects to achieve "positive adjusted Ebitda by the third quarter of FY26."