Food and grocery delivery firm Swiggy Ltd said on February 21 that it will invest up to Rs 1,000 crore in Scootsy Logistics in one or more tranches.
Scootsy is currently engaged in the business of supply chain services and distribution. The services include 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.
This investment is for working capital and other capital expenditure as part of the company's business expansion, said Swiggy.
"The Board of Directors approved investment in the equity shares of Scootsy Logistics Private Limited, a wholly owned subsidiary of the Scootsy, up to an amount not exceeding Rs 1,000 crore in one or more tranches, by way of subscription to rights issue up to Rs 1,000 crore towards working capital and other capital expenditures as part of the company's business expansion," said Swiggy in a stock exchange filing.
Scootsy was incorporated under the Companies Act, 2013 on November 27, 2014. Scootsy recorded turnover of Rs 5,796 crore in FY24, Rs 3,686 crore in FY23 and Rs 1,580 crore in FY22.
"Except to the extent of shares held by the Company in Scootsy, the Company has no interest in Scootsy," said Swiggy.
On February 21, Swiggy shares on BSE closed 3.6% lower at Rs 360 apiece. The all-time high of the stock is Rs 617.3 and all-time low is Rs 325. The market capitalisation of the stock is Rs 81,686 crore.
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