Zomato rival Swiggy to invest Rs 1,000 crore in Scootsy Logistics to support business expansion

Food and quick-commerce platform Swiggy said it will invest up to Rs 1,000 crore in its wholly owned subsidiary Scootsy Logistics, a move aimed at bolstering logistics capacity and enhancing operational efficiency.

The decision, which was approved at a board meeting on Feb. 21, 2025, envisions a rights issue of Scootsy’s shares, purchased at Rs 7,640 apiece, including a Rs 7,630 premium.

The infusion will be made in one or more tranches, according to regulatory filings.

What does Scootsy Logistics do?

Launched in 2014, Scootsy Logistics handles supply chain services for wholesalers and retailers. Among its offerings are warehouse management, in-warehouse processing (such as value-added services), and efficient order picking and shipping.

Its turnover soared to Rs 5,795.7 crore in the fiscal year ended March 31, 2024, rising from Rs 3,686.2 crore a year earlier.

In Q3FY25, Scootsy contributed 42% of Swiggy’s overall operating revenue. Income from this entity increased by 23% QoQ to Rs 1,692 crore in Q3FY25 from Rs 1,377 crore in Q3FY24.

No change in ownership

Despite the latest cash injection, Swiggy says there will be no change in its ownership stake, leaving Scootsy as a wholly owned subsidiary. Company executives said the transaction, which qualifies as a related-party deal, is being executed on an arm’s length basis.

Swiggy’s decision to allocate up to Rs 1,000 crore for working capital and capital expenditures is meant to align Scootsy’s infrastructure with the platform’s growing market presence. 

Over the past few years, Swiggy has diversified beyond food delivery to include quick-commerce solutions for everyday needs. 

By refining its distribution and last-mile logistics through Scootsy, the company aims to bolster consumer satisfaction and quicken delivery times, key competitive edges in India’s bustling on-demand sector.