Swiggy to Invest ₹1,000 Crore in Scootsy Logistics in Phases

Swiggy Ltd, India’s leading food and grocery delivery platform, has announced a significant investment of up to ₹1,000 crore in Scootsy Logistics. The investment will be made in one or more tranches, as per the company's official statement on Friday, February 21, 2025.

Scootsy Logistics, a wholly owned subsidiary of Swiggy, specializes in supply chain services and distribution. The funding is expected to enhance Scootsy's operational capabilities, improve logistics, and support business expansion.

Scootsy Logistics: Enhancing Supply Chain and Order Fulfillment

Scootsy Logistics plays a crucial role in Swiggy’s supply chain network by offering:

• Warehouse Management – Streamlining logistics operations for optimal efficiency.

• In-Warehouse Processing – Providing value-added services to improve product delivery.

• Order Fulfillment Solutions – Enabling smooth order processing, packing, and shipping for wholesalers and retailers.

These services help Swiggy maintain efficient deliveries and strengthen its market presence in the competitive food and grocery segment.

Swiggy’s Board Approves Investment for Business Growth

Swiggy's board of directors has approved this investment as part of the company's long-term business strategy. According to the official stock exchange filing, the ₹1,000 crore funding will be allocated through a rights issue and will be utilized for:

• Working Capital Requirements – Ensuring the seamless functioning of Scootsy’s operations.

• Capital Expenditures – Enhancing warehousing infrastructure and logistics capabilities.

Swiggy stated that this investment aligns with its growth plans and is expected to strengthen its logistics and delivery services.

Transaction Details: A Related Party Investment

Since Scootsy is a wholly owned subsidiary of Swiggy, this transaction falls under the category of related party transactions. However, Swiggy clarified that the investment is being made at arm’s length, ensuring compliance with financial regulations.

Swiggy also confirmed that its ownership in Scootsy will remain unchanged, meaning the latter will continue to function as a wholly owned subsidiary of the company.

Scootsy’s Financial Growth Over the Years

Scootsy Logistics has shown impressive financial growth over the past few years. The company’s turnover figures reflect its expanding market footprint:

• FY24 Turnover: ₹5,796 crore

• FY23 Turnover: ₹3,686 crore

• FY22 Turnover: ₹1,580 crore

This upward trajectory indicates Scootsy’s growing importance in Swiggy’s business model. The investment will likely help Scootsy sustain this momentum and expand its logistics network further.

Swiggy’s Financial Performance: Rising Revenue but Increasing Losses

Despite strong revenue growth, Swiggy reported widening losses in Q3FY25. The company’s financial highlights for the quarter include:

• Net Loss in Q3FY25: ₹799 crore (up from ₹574.4 crore in Q3FY24)

• Revenue from Operations: ₹3,993 crore (31% YoY growth)

• Total Income: ₹4,095.8 crore (30.8% YoY growth)

Swiggy attributed its losses to increased capital expenditure (capex) on warehousing and dark store infrastructure. These investments aim to boost efficiency in its quick commerce and food delivery operations.

Swiggy’s Stock Market Performance and Future Outlook

Since its stock market debut in November 2024, Swiggy has been aggressively expanding its business. The company remains optimistic about its future and has projected achieving positive adjusted EBITDA by Q3FY26.

Swiggy’s investment in Scootsy Logistics reflects its commitment to strengthening its supply chain infrastructure and maintaining a competitive edge in the fast-growing food and grocery delivery market.