Swiggy to invest Rs 1,600 Cr in Scootsy Logistics to grow its dark store count
Swiggy informed in its red herring prospectus filed before the IPO that Scootsy will be utilised for opening about 538 dark stores.
Food delivery firm has announced an investment of Rs 1,600 crore in its material subsidiary Scootsy Logistics Private Limited by way of subscription to its rights issue.
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. The subsidiary incurred losses of Rs 423 crore in FY24, according to papers filed by Swiggy ahead of its public issue.
According to its red herring prospectus filed before the IPO, Scootsy will be utilised for opening about 538 dark stores as the foodtech company rides the quick commerce tide.
Swiggy has further informed the exchanges about the incorporation of a new wholly owned subsidiary.
In its quarterly results, the company announced that up to Rs 1,350 crore will be deployed as a part of the IPO proceeds towards Instamart and its expansion and up to Rs 250 crore towards working capital infusion.
In Q2 FY25, the company reported a slight decline in its net loss on a YoY basis. For the July-September 2024 period, it reported a net loss of Rs 625.5 crore compared with Rs 657 crore in the same period last year. On a QoQ basis, the loss was, however, up marginally.
Swiggy’s revenue for the second quarter rose 11.8 % on a QoQ basis to Rs 3,601 crore, from Rs 3,222 crore in the April-June 2024 period. On a YoY basis, the revenue grew 30%.
Swiggy, which listed on public bourses on November 6, closed the day 0.55% lower at 3:30 pm, ending up at Rs 491 apiece on NSE. However, its stock was trading at Rs 514.68 before the results were announced.
Swiggy’s Rs 11,327-crore IPO received an enthusiastic response, being oversubscribed 3.59 times.
(The headline was updated)
Edited by Kanishk Singh
