Swiggy Shares Slip 4% During Morning Trade

Shares of foodtech giant Swiggy slipped almost 4% to INR 350.75 during the intraday trading session on the BSE today (February 25). 

This comes after the company on Friday (February 21) announced its plans to invest INR 1,000 Cr in its wholly owned subsidiary Scootsy Logistics Pvt Ltd. 

Following that, the stock closed the previous trading session (February 24) in green. However, its share price was marginally up at the closing yesterday. 

With a drop in its share price today, Swiggy’s market capitalisation stood at INR 80,847 Cr at 11:26 AM, with more than 52 Lakhs shares exchanged hands by then. 

The stock however slightly recovered at the time of writing and was trading 2.18% down at INR 357 per share on the BSE.

While Swiggy’s shares are still in red, its rival Zomato’s shares are nearly 3% up at the current market price. 

The Sriharsha Majety-led company in its rationale behind investing in Scootsy said that the investment is for working capital and other capital expenditures to expand its business.

Scootsy is an intracity online delivery service that deals in categories such as restaurant and gourmet food, toys, beauty, electronics and more to the customer’s doorstep.

On the same day, Swiggy also allotted 1.7 Cr equity shares under two different employee stock option (ESOP) schemes, as per its exchange filing. Following the allotment, Swiggy’s paid-up equity share capital increased to INR 2.28 Cr from INR 2.26 Cr earlier.

Earlier this month, Swiggy reported an increase in its consolidated net loss by 39% to INR 799 Cr in the third quarter of the current fiscal year (Q3 FY25) from INR 574.4 Cr in the year-ago quarter. On a quarter on quarter (QoQ) basis, Swiggy’s loss increased 27.7% in Q3 FY25  from INR 625.5 Cr.

Notably, Swiggy Instamart was one of the reasons behind the rise in loss, as increasing competition took its toll. In Q3 FY25, Swiggy Instamart raked in a loss of INR 527.68 Cr, up 70% YoY from INR 310.36 Cr.