Food delivery giant Swiggy announced on Friday that it was investing about ₹1,000 crore in the logistics company Scootsy Logistics, the wholly owned subsidiary of the company Scootsy, in one or more tranches.

The Bengaluru-based company noted that the investment will drive working capital and other capital expenditures as part of the company’s broader plans for business expansion. “There will be no change in shareholding of the company in Scootsy,” noted the company's statement in an exchange filing today.

“Investment by the company in the equity shares of Scootsy Logistics Private Limited, the wholly owned subsidiary of the Company (“Scootsy”), up to an amount not exceeding INR 1,000 crores in one or more tranches, by way of subscription to rights issue upto INR 1,000 crores (Rupees One Thousand Crores) towards working capital and other capital expenditures as part of the company's business expansion,” Swiggy wrote.

The company did not reveal any details about the timeline for the acquisition’s completion. “Except to the extent of shares held by the Company in Scootsy, the Company has no interest in Scootsy.”

Scootsy Logistics Private Limited (“Scootsy”) specialises in supply chain services and distribution. Its services include warehouse management in streamline operations, in warehouse processing with value-added services to enhance deliveries and an organised order fulfilment system that ensures picking, packing and shipping wholesalers and retailers.

Scootsy was officially incorporated under the Companies Act, 2013 on November 27, 2014, marking the beginning of its journey in the logistics and supply chain domain.

Scootsy Logistics

Swiggy to invest up to ₹1,000 cr in Scootsy’s logistics arm