New Delhi: Swiggy has announced plans to invest up to Rs 1,000 crore in its logistics subsidiary, Scootsy Logistics, aiming to expand its supply chain capacity and streamline operations. The investment, approved in a board meeting on February 21, 2025, will be made through a rights issue at Rs 7,640 per share.
Investment to Support Business Growth
According to regulatory filings, the funding will be provided in multiple tranches. Swiggy’s move aligns with its broader strategy of strengthening its logistics network, particularly as it expands beyond food delivery into quick commerce. Despite the capital infusion, Scootsy Logistics will remain a wholly owned subsidiary of Swiggy.
Scootsy Logistics’ Role in Swiggy’s Business
Founded in 2014, Scootsy Logistics offers supply chain solutions, including warehouse management, order processing, and last-mile delivery. The company’s revenue surged to Rs 5,795.7 crore in FY24, up from Rs 3,686.2 crore in the previous fiscal year. In Q3FY25, Scootsy contributed 42% of Swiggy’s operating revenue, generating Rs 1,692 crore, a 23% rise from the same quarter last year.
Strengthening Logistics Amid Market Competition
The investment highlights Swiggy’s focus on improving delivery efficiency amid growing competition in India’s on-demand services market. The company has been expanding its quick-commerce segment, making logistics a crucial factor in its business strategy. By improving Scootsy’s infrastructure, Swiggy aims to optimize distribution and reduce delivery times to stay competitive.
Swiggy executives stated that the transaction follows an arm’s length principle and is classified as a related-party deal. The funding will be used for working capital and infrastructure upgrades to support the platform’s growing demand.
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