Food and grocery delivery giant Swiggy Ltd announced on Friday that it will invest up to $120 million in its wholly owned subsidiary Scootsy Logistics in one or more tranches. Scootsy specializes in supply chain services and distribution, including warehouse management, in-warehouse processing with value-added services, and order fulfillment for wholesalers and retailers. We wish to inform that the Board of Directors of the company, at its meeting held on Friday, February 21, 2025, has approved the investment by the company in the equity shares of Scootsy Logistics Private Limited, a wholly owned subsidiary of the company ('Scootsy'), up to an amount not exceeding Rs 1,000 crore in one or more tranches by way of subscription to a rights issue. The investment will be utilised for working capital and other capital expenditures as part of the company's business expansion, Swiggy said in a stock exchange filing. Despite the capital infusion, Scootsy will remain a wholly owned subsidiary of Swiggy, with no change in shareholding. The investment, categorized as a related party transaction, is at arm’s length, the company confirmed. Scootsy reported a strong revenue growth over the past three financial years, reflecting its expanding operations. Meanwhile, Swiggy posted a widening net loss of $96 million in Q3FY25, compared to $69 million in the same period last year, attributing the decline to increased capital expenditure on warehousing and dark store infrastructure. The company’s revenue surged 31% YoY to $480 million in Q3FY25. Swiggy, which debuted on the stock market in November 2024, has projected positive adjusted EBITDA by Q3FY26 as it continues its expansion.Image Source: Generated by ChatGPT