Swiggy is doubling down on its logistics game with a hefty investment of up to ₹1,000 crore in its subsidiary, Scootsy Logistics. The move, approved at a board meeting on February 21, 2025, is aimed at scaling up its supply chain operations and strengthening delivery efficiency.
As part of the investment, Swiggy will inject funds into Scootsy through a rights issue, purchasing shares at ₹7,640 apiece, with ₹7,630 of that being a premium. The capital infusion will happen in multiple phases, as per the company’s regulatory filings.
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What Does Scootsy Logistics Bring to the Table?
Originally launched in 2014, Scootsy Logistics plays a crucial role in Swiggy’s backend operations, handling everything from warehouse management to order fulfillment. The subsidiary specializes in streamlining supply chain processes for both wholesalers and retailers, offering services like in-warehouse processing, order picking, and last-mile delivery.
The business has seen rapid growth, with revenue soaring from ₹3,686.2 crore in FY23 to ₹5,795.7 crore in FY24. In Q3FY25 alone, Scootsy generated ₹1,692 crore in revenue, marking a 23% jump from ₹1,377 crore in the same quarter last year. The subsidiary now accounts for 42% of Swiggy’s total operational revenue, highlighting its importance in the company’s broader strategy.
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Swiggy Retains Full Control
Despite this massive cash infusion, Swiggy remains the sole owner of Scootsy Logistics, with no change in its stake. The transaction is classified as a related-party deal but is being executed at an arm’s length basis to maintain transparency.
The investment is aimed at expanding Scootsy’s infrastructure to support Swiggy’s increasing presence in the quick-commerce space. Over the past few years, Swiggy has evolved beyond food delivery, betting big on rapid grocery and essentials delivery. With this latest push in logistics, the company is looking to fine-tune its supply chain, cut delivery times, and gain an edge in India’s fiercely competitive on-demand market.
