Swiggy to invest up to Rs 1,000 Cr in Scootsy amid heavy dark store expansion
Swiggy's investment in Scootsy, which looks at company's dark store network, comes as competition in quick commerce heats up.
Quick commerce and food delivery player on Friday said it will invest up to Rs 1,000 crore in its unit Scootsy Logistics to meet its working capital and capital expansion requirements amid the recent quick commerce boom.
Swiggy acquired shares in the unit at Rs 7,640 apiece, and expects to close the deal across one or multiple tranches, the company stated in an exchange filing.
Previously, it announced an investment of Rs 1,600 crore in Scootsy by way of subscription to its rights issue in December last year.
Scootsy is currently engaged in the business of supply chain services and distribution, which mainly refers to the company's dark store network. It offers services like warehouse management to streamline operations; in-warehouse processing that includes value added services to enhance product delivery; and efficient order fulfillment which enables efficient order picking, packing, and shipping processes for the wholesalers and retailers.
The unit clocked a turnover of Rs 5,795.7 crore in FY24, a 57.2% growth from Rs 3,686.2 crore that it clocked in the previous year.
Scootsy was an on-demand premium food delivery service that Swiggy acquired in 2018 in an all-cash deal. However, it closed the subsidiary's operations in 2020 after the subsidiary incurred losses.
In a separate filing, the company also announced allotment of 1.71 crore equity shares of the company
under Swiggy ESOP (Employee Stock Option Plan) 2015 and Swiggy ESOP 2021 programmes.
Following the allotment, Swiggy's paid-up equity share capital of the Company stands increased from Rs. 226 crore to Rs 228 crore.
"Further, we would like to confirm that the above allotted shares shall rank pari-passu with the existing
equity shares of the company," Swiggy stated in a filing made with the exchanges.
Edited by Jyoti Narayan