Daijiworld Media Network - Bengaluru

Bengaluru, Feb 22: Food and grocery delivery giant Swiggy has announced an investment of up to Rs 1000 cr ($115.47 million) in its supply chain subsidiary Scootsy, as it continues to expand its quick-commerce arm, Instamart.

Scootsy specializes in warehouse management and order processing to enhance deliveries for wholesalers and retailers. This investment, following a Rs 1600 cr infusion in December, will be made in multiple tranches as part of Swiggy’s growth strategy.

With rival Zomato (now rebranded as Eternal) strengthening its quick-commerce unit Blinkit, Swiggy has accelerated investments in Instamart to maintain a competitive edge. Both platforms are racing to dominate the 10-minute delivery market for groceries, electronics, and essentials.

While quick commerce is growing faster than traditional food delivery, the latter remains the primary revenue driver for both Swiggy and Zomato. However, aggressive spending in the segment has put pressure on margins.

Swiggy’s revenue from supply chain services surged by nearly 23% year-on-year, reaching Rs 1693 cr in the October–December quarter, highlighting the growing significance of its logistics business.