Foodtech major Swiggy plans to invest INR 1,000 Cr in its wholly owned subsidiary Scootsy Logistics Pvt Ltd.
In an exchange filing, the company said that its board approved the investment by subscribing to a rights issue in one or more tranches.
The transaction will value one share of the subsidiary at INR 7,640.
Swiggy said that the investment is for working capital and other capital expenditures as part of the company’s business expansion.
Scootsy is an intracity online delivery service that deals in categories such as restaurant and gourmet food, toys, beauty, electronics and more to the customer's doorstep. Besides, its services also include warehouse management, in-warehouse processing that includes value added services to enhance product delivery, order fulfillment, packing, and shipping processes for wholesalers and retailers.
Founded in July 2015 by Rishi Khiani, Sandeep Das, Sanjay Ghai and Sunil Saraf, Scootsy started as a one-stop pan-city delivery platform, which enables on-demand gratification of consumer needs. After raising its Series G funding round in 2018, Swiggy acquired the startup via an all-cash deal.
Scootsy's revenue for the fiscal year 2023-24 (FY24) stood at INR 5,795.7 Cr, up 57% from the INR 3,686.2 Cr in FY23.
Swiggy, which went public in November 2024, said in its red herring prospectus that it would make an investment of INR 1,178.7 Cr in Scootsy to expand its dark store network and further make licence payments for the said dark stores it adds under the Scootsy banner.
Besides, it also set aside INR 164.8 Cr from the IPO proceeds for “repayment or pre-payment, in full or in part, of certain or all of its (Scootsy’s) borrowings”. As per its financial statement for the third quarter of the fiscal year 2024-25 (Q3 FY25), Swiggy had already made an investment of INR 164.8 Cr in Scootsy during the quarter.
Swiggy's consolidated net loss rose 39.1% to INR 799 Cr in the quarter from INR 574.4 Cr in the year-ago quarter. Meanwhile, its operating revenue zoomed nearly 31% to INR 3,993.1 Cr during the quarter under review from INR 3,048.6 Cr in Q3 FY24.
Shares of Swiggy have been on a free fall since the disclosure of its Q3 results and have crashed about 14% in the time period. The stock touched an all-time low of INR 326 on February 14.
In a separate announcement, Swiggy said on Friday (February 21) that its board also approved the allotment of 1.75 Cr equity shares to eligible employees under Swiggy ESOP Plan 2015 and Swiggy ESOP Plan 2021.
Shares of Swiggy ended Friday's trading session -3.47% lower at INR 360.70on the BSE.