Food delivery giant Swiggy on Friday announced a Rs 1,000 crore investment in its supply chain subsidiary, Scootsy, following board approval.This comes after a Rs1,600 crore infusion into Scootsy in December, underscoring Swiggy’s aggressive push into supply chain and logistics.
In a stock exchange filing, Swiggy stated that the investment will be executed via a rights issue in one or more tranches, valuing each Scootsy share at Rs 7,640.
The capital will be used for working capital needs and other capital expenditures, as Swiggy’s quick commerce arm, Instamart, continues its rapid expansion.
Acquired by Swiggy in an all-cash deal in 2018, Scootsy is an intracity online delivery platform catering to categories such as restaurant and gourmet food, toys, beauty, electronics, and more. It also provides warehouse management, in-warehouse processing, order fulfillment, packing, and shipping services for wholesalers and retailers.
In FY24, Scootsy reported a turnover of Rs 5,796 crore, a significant rise from Rs 3,686 crore in FY23 and Rs 1,580 crore in FY22.During the October-December quarter, Swiggy’s revenue from supply chain services surged nearly 23% year-on-year to Rs 1,693 crore.
Both Swiggy and its rival Zomato have been ramping up investments in their quick commerce businesses to secure a dominant market share in the fast-growing sector. On Friday, Swiggy’s shares closed 3.6% lower at ₹360 apiece on the BSE.
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