Swiggy, a leading foodtech company, is setting up a new wholly-owned subsidiary that will operate in the sports and recreation activities segment.
The company’s board has approved the incorporation of the new subsidiary, which will engage in various activities such as sports team ownership, management, talent development, event organization, and facility operation.
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Acquiring broadcasting, sponsorship rights – Swiggy
“The main objects of the newly to be incorporated entity will include engaging in sports team ownership, management, talent development, event organisation, and facility operation, offering career services, acquiring broadcasting and sponsorship rights, and promoting sports events through various business models etc,” the company said in an exchange filing.
In addition to setting up the new subsidiary, Swiggy’s board has also approved an investment of up to INR 1,600 crore in its wholly-owned subsidiary Scootsy Logistics. Out of the total investment, INR 1,350 crore will be allocated from Swiggy’s IPO proceeds to fuel the growth and expansion of Instamart.
“This investment is part of the proceeds as specified in IPO prospectus dated November 8, 2024 for expansion of dark store network for quick commerce through setting up of dark stores,” the filing said.
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Swiggy’s Scootsy reports revenue of INR 5,196 Cr
The remaining INR 250 crore will be directed towards addressing Scootsy‘s immediate working capital needs. Scootsy reported a revenue of INR 5,195.7 crore in the financial year ended March 2024.
Swiggy also released its financial results for the second quarter of the financial year 2024-25, reporting a net loss of INR 625.53 crore, which is a 4.78% decrease from the same quarter last year. The company’s operating revenue zoomed 30% to INR 3,601.45 crore.
