Food and grocery delivery giant Swiggy Ltd announced on Friday, February 21, that it will invest up to ₹1,000 crore in its subsidiary, Scootsy Logistics, in one or more tranches. The investment will be directed towards working capital and capital expenditure as part of Scootsy’s business expansion, the company stated.
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Scootsy, engaged in supply chain services and distribution, offers warehouse management, in-warehouse processing with value-added services, and efficient order fulfilment for wholesalers and retailers. Swiggy’s infusion of funds aims to enhance these operations and support its long-term growth strategy.
“The Board of Directors approved investment in the equity shares of Scootsy Logistics Private Limited, a wholly owned subsidiary of Scootsy, up to an amount not exceeding ₹1,000 crore in one or more tranches, by way of subscription to rights issue up to ₹1,000 crore towards working capital and other capital expenditures as part of the company’s business expansion,” Swiggy stated in a stock exchange filing.
Scootsy, incorporated on November 27, 2014, has witnessed significant revenue growth in recent years. The company reported a turnover of ₹5,796 crore in FY24, up from ₹3,686 crore in FY23 and ₹1,580 crore in FY22.
“Except to the extent of shares held by the Company in Scootsy, the Company has no interest in Scootsy,” Swiggy clarified.
Meanwhile, Swiggy’s stock closed 3.6% lower at ₹360 per share on the BSE on Friday, February 21. The stock’s all-time high stands at ₹617.3, while its lowest level was ₹325. Swiggy’s market capitalisation currently stands at ₹81,686 crore.
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(Edited by : Shoma Bhattacharjee)
