Swiggy, the food tech company, on January 15 said the Ministry of Corporate Affairs (MCA) has approved the incorporation of Swiggy Sports Private Limited as a wholly owned subsidiary of the food and grocery delivery major.
The company shared the update in a regulatory filing. The subsidiary will operate in sports activities, amusement and recreation activities. "…Ministry of Corporate Affairs, Central Processing Centre has approved incorporation of Swiggy Sports Private Limited, a wholly owned subsidiary of the Company, today, January 15, 2025,” the filing said.
”The main objects of the newly 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.,” Swiggy said.
On December 3, the company, while announcing its quarterly results, said once the MCA approval comes through, it will engage in the business of ownership and management of sports teams, organising events, as well as acquiring broadcasting and sponsorship rights, among other key businesses.
This is part of a broader diversification plan at Swiggy which is looking to increase revenue streams to take on old rival Zomato.
"The main objects of the newly to be incorporated entity will include engaging in sports team ownership, management, talent development, event organization, and facility operation, offering career services, acquiring broadcasting and sponsorship rights, and promoting sports events through various business models etc," the company had said back then.
A few months ago, old rival Zomato had forayed into the events business with the acquisition of Paytm's ticketing business for Rs 2,048 crore.
In August last year, Zomato had launched 'District,' aiming to consolidate its going-out business, including dining and ticketing (movies and events), in an effort to expand beyond core food delivery services and hyper commerce. This had marked Zomato's entry into lifestyle services, sports ticketing, live performances, shopping, staycations, and more — all under a single company.
The latest development by Swiggy is set to take the competition between both quick commerce majors beyond the food delivery market.
However, Swiggy's immediate plans, with a sports arm, are not yet fully clear. In December, Rohit Kapoor, the food marketplace CEO of Swiggy told analysts that, " I think just to clarify, we are not getting into the sports business or in any significant way."
Last November, Swiggy had announced its ownership of Team Mumbai in the World Pickleball League. It said pickleball as a sport was picking up rapidly and the company wants a ringside view of the happenings.
" We have gone and acquired the Pickleball team rights for the city of Mumbai and that's a very limited play that we have there. The company has been formed because this is a sub-course, so it had to be formed for that reason...Again, clarifying very clearly, we are not getting into sports business or sports events...not into sports events or anything of that nature," Kapoor had said then in December.
(With inputs from PTI)
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