Swiggy expands into sports as it looks to go beyond food, grocery segments

Swiggy has received approval from the Ministry of Corporate Affairs (MCA) to incorporate Swiggy Sports Pvt. Ltd., a wholly owned subsidiary of Swiggy, solidifying its effort to diversify out of its food and grocery delivery services.

In the July-September earnings call, the foodtech giant announced the creation of Swiggy Sports to house the pickleball team it acquired in November 2023. 

"The primary objectives of the new entity will encompass sports team ownership, management, talent development, event organisation, facility operations, career services, acquiring broadcasting and sponsorship rights, and promoting sports events through various business models," Swiggy said in a stock exchange filing. 

Last November, Swiggy purchased Team Mumbai—co-founded by former Indian tennis players Gaurav Natekar and Arati Ponnappa Natekar—in the World Pickleball League (WPBL), India’s first global franchise-based pickleball league. Its inaugural season will be held from January 24 to February 2, 2025.

In August last year, Swiggy’s rival, Zomato, launched District to consolidate its dining and ticketing business after it acquired Paytm’s events ticketing business for Rs 2,048.4 crore.

Swiggy's immediate strategy is unclear as to how it will scale its sports arm. Swiggy’s food marketplace CEO Rohit Kapoor in December told analysts that Swiggy was not getting into the sports business in any significant way. 

“Swiggy entering this segment would be a significant move, this sport (pickleball) is growing among all age groups, and the ripple effect of its popularity in tier-1 cities is slowly being seen in smaller towns as well who are adapting this game. Currently, the segment is fragmented with many operators, and a player like Swiggy would formalise the operations for sure,” Sumant Pradhan, a long-term pickleball enthusiast and senior aviation executive. 

Swiggy cut its loss by nearly 5% year-on-year (YoY) to Rs 625.53 crore in the second quarter of FY25. Its operating revenue was up 30% YoY to Rs 3,601.45 crore during the quarter.