Indian food and grocery delivery firm Swiggy said on Friday it will invest up to 10 billion rupees ($115.47 million) in its supply chain subsidiary, amid an ongoing expansion of its fast-growing quick-commerce arm Instamart.
Scootsy provides services such as warehouse management and processing to improve order deliveries and shipping processes for wholesalers and retailers.
Swiggy said its investment in Scootsy, which follows the 16 billion rupees it made in December, will take place in one or more tranches and is part of the company’s business expansion.
Like rival Zomato, which recently changed its name to Eternal, did with Blinkit, Swiggy has ramped up investments in the quick-commerce arm Instamart. Both aim to deliver goods ranging from groceries to electronics in 10 minutes or less.
The burgeoning sector’s growth is outpacing food delivery, though the latter remains the cash cow for both Zomato and Swiggy. However, increasing investments in quick commerce to grab market share have put pressure on margins for both companies.
Swiggy’s revenue from supply chain services rose nearly 23% year-on-year to 16.93 billion rupees in the October to December quarter.
Reuters
