E-commerce supply chain company Scootsy will get an additional funding of up to Rs 1,600 crore in tranches from parent Swiggy through a rights issue, the company informed stock exchanges along with its quarterly results on December 3.
Swiggy said the subsidiary will get Rs 1,350 crore meant for expansion-related expenditure in the brand Instamart, while Rs 250 crore will be provided as working capital. This investment was specified by Swiggy in its IPO prospectus, and part of the corpus will be used for expansion of Scootsy's dark store network and for making lease / license payments for dark stores.
Swiggy is subscribing to the rights issue of Scootsy at a price of Rs 7,640 per share, the company said, and the investment will not lead to any change in the shareholding pattern.
Scootsy is in the business of supply chain services and distribution, and offers services such as warehouse management, in-warehouse processing and order fulfilment along with shipping processes for wholesalers and retailers.
For FY24, Scootsy clocked a turnover of Rs 5,795.7 crore, steadily growing over past three years from Rs 1,580.3 crore in FY22. Supply Chain and Distribution contributes nearly 40% to Swiggy's revenue, second only to food delivery business. For FY24, Scootsy had incurred a loss of Rs 423.97 crore.
Read more on Swiggy's first quarterly results after listing here.
Quick commerce player Swiggy also informed of plans to set up a subsidiary to enter in the business of ownership and management of sports teams, organising events, as well as acquiring broadcasting and sponsorship rights, among other key businesses.
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