Swiggy to Infuse ₹1,000 Crore into Scootsy Logistics for Expansion

24 Feb 2025 , 09:54 AM

Swiggy Ltd, a prominent food and grocery delivery service, announced on Feb 21, 2025, that it plans to invest up to ₹1,000 crore in its subsidiary Scootsy Logistics. The investment will be done over one or more tranches and will focus on working capital and capital expenditure as part of Scootsy’s business growth strategy.

Scootsy Logistics provides specialized supply chain services and distribution, such as warehouse management, in-warehouse processing with value-added services, and efficient order fulfillment for wholesalers and retailers.

The cash support from Swiggy comes in efforts to strengthen Scootsy’s operations, as well as improve the efficiency of its logistics and facilitate the long-term growth strategy.

The Swiggy Board of Directors approved the investment by way of rights issue, whereby Swiggy would subscribe to equity shares of Scootsy Logistics for an amount up to ₹1,000 crore.

Scootsy has consistently posted strong revenue growth, with turnover of ₹5,796 crore in FY24 (up from ₹3,686 crore in FY23 and ₹1,580 crore in FY22). Swiggy stated in its filing that it has no other financial interest in Scootsy, besides being the parent company and holding shares in the subsidiary. This investment is part of Swiggy’s strategy to advance its logistics capabilities, fortify its supply chain operations and improve overall business efficiency.