Swiggy to Invest ₹1,000 Crore in Scootsy Logistics for Business Expansion
Swiggy Ltd announced on Friday that it will invest up to ₹1,000 crore in its wholly owned subsidiary, Scootsy Logistics, through a rights issue. The investment, approved by Swiggy’s board, will be utilized for working capital and capital expenditures to support business expansion. Scootsy, engaged in supply chain services and distribution, specializes in warehouse management, in-warehouse processing, and order fulfillment for wholesalers and retailers.
Despite the investment, Swiggy’s shareholding in Scootsy will remain unchanged. Scootsy recorded a turnover of ₹5,796 crore in FY24, growing significantly from ₹3,686 crore in FY23. The investment comes amid Swiggy’s widening net loss, which rose to ₹799 crore in Q3FY25 from ₹574.4 crore a year ago, primarily due to increased capital expenditure on warehousing and dark store infrastructure.
Swiggy, which debuted on the stock market in November 2024, reported a 31% year-on-year growth in consolidated revenue from operations, reaching ₹3,993 crore in Q3FY25. The company remains optimistic about achieving positive adjusted EBITDA by Q3FY26, aiming for long-term profitability despite recent financial setbacks.
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