[Update] Swiggy Setting Up Sports Subsidiary To House Pickleball Team

Foodtech major Swiggy is setting up a new wholly owned subsidiary which will operate in the “sports activities and amusement and recreation activities” segment. 

In an exchange filing, the recently listed company said that it received the approval of its board to incorporate the new subsidiary for undertaking the new business.

“The main objects of the newly to be incorporated entity will include engaging in sports team ownership, management, talent development, event organisation, and facility operation, offering career services, acquiring broadcasting and sponsorship rights, and promoting sports events through various business models etc,” the filing said. 

However, the company clarified in a post-earnings call that the subsidiary will only house the team which it acquired in the World Pickleball League (WBPL).

“… this is a very limited venture for us. To reiterate, the company remains focused on its core business. We are not venturing into sports events or the broader sports business beyond these specific rights. At this point, our involvement is purely limited to owning the rights to the Mumbai pickleball team, with no plans to expand into sports further,” Swiggy said. 

Notably, a few weeks back, the foodtech major acquired the Mumbai pickleball team – the second team announced by WBPL after the Chennai franchise owned by actor Samantha Ruth Prabhu.

The first edition of the tournament will be held from January 24 to February 2, 2025.

Meanwhile, Swiggy also said that its board approved an investment of up to INR 1,600 Cr in one or more tranches in its wholly owned subsidiary Scootsy Logistics.

Out of the total investment, INR 1,350 Cr will be allocated from Swiggy’s IPO proceeds to fuel the growth and expansion of Instamart. 

“This investment is part of the proceeds as specified in IPO prospectus dated November 8, 2024 for expansion of dark store network for quick commerce through setting up of dark stores,” the filing said. 

Meanwhile, INR 250 Cr will be directed towards addressing Scootsy’s immediate working capital needs.

Notably, Scootsy reported a revenue of INR 5,195.7 Cr in the financial year ended March 2024 (FY24).

Swiggy released its financial results for the second quarter of the financial year 2024-25 (Q2 FY25) today. Its net loss narrowed 4.78% year-on-year to INR 625.53 Cr, while operating revenue zoomed 30% to INR 3,601.45 Cr.