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Swiggy Ltd, the food and grocery delivery giant, announced on 21 February that its Board of Directors has approved an investment of up to Rs 1,000 crore in Scootsy Logistics Private Limited, a wholly owned subsidiary. The investment, which will be made in multiple tranches, is aimed at enhancing working capital and capital expenditure as part of Scootsy’s business expansion plans.
Scootsy, incorporated in November 2014, specialises in supply chain services, including warehouse management, in-warehouse processing with value-added services, and efficient order fulfilment for wholesalers and retailers. The planned capital infusion will allow Scootsy to optimise operations, streamline product delivery, and scale up its distribution network.
"The Board of Directors approved investment in the equity shares of Scootsy Logistics Private Limited, a wholly owned subsidiary of the Scootsy, up to an amount not exceeding Rs 1,000 crore in one or more tranches, by way of subscription to a rights issue, towards working capital and other capital expenditures as part of the company's business expansion," Swiggy stated in a stock exchange filing.
Scootsy’s Financial Growth
Scootsy has demonstrated strong revenue growth over the past three years:
- FY24 turnover: Rs 5,796 crore
- FY23 turnover: Rs 3,686 crore
- FY22 turnover: Rs 1,580 crore
Swiggy clarified that apart from its existing stake in Scootsy, it holds no other financial interests in the company.
Stock Performance
Despite the announcement, Swiggy’s shares closed 3.6 per cent lower at Rs 360 apiece on the BSE on 21 February. The stock’s all-time high stands at Rs 617.3, while its lowest recorded value is Rs 325. Swiggy currently has a market capitalisation of Rs 81,686 crore.
With this significant investment, Swiggy aims to strengthen its logistics infrastructure and enhance supply chain efficiency, positioning Scootsy as a key player in India’s rapidly evolving e-commerce and food delivery landscape.
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