Swiggy public issue: Plans to expand dark stores, invest in technology, cloud infrastructure

Scootsy will in turn be utilised for opening about 538 dark stores. A strong network of dark stores (which is a retail distribution centre for online orders) is essential for quick commerce players.
Swiggy public issue: Plans to expand dark stores, invest in technology, cloud infrastructure
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NEW DELHI: Food delivery platform Swiggy, which will raise Rs 3,750 crore via a fresh issue of shares, plans to use over Rs 559 crore of the net proceeds out of Rs 982 crore towards investing in its material subsidiary, Scootsy.

Scootsy will in turn be utilised for opening about 538 dark stores. A strong network of dark stores (which is a retail distribution centre for online orders) is essential for quick commerce players.

It proposes to open dark stores in cities where its existing dark stores operate Mumbai, Pune, Bengaluru, Chennai, Hyderabad, New Delhi and Kolkata. As per the Draft Red Herring Prospectus (DRHP), the SoftBank-backed firm plans to set up 538 dark stores from fiscal 2025-2028 and the aggregate capital expenditure for setting up these stores will be Rs 559.1 crore.

As the quick commerce business is becoming more competitive, recently its rival Zomato-owned Blinkit announced plans to set up 2,000 dark stores by the end of 2026. As of June 30, 2024, Swiggy has 581 open dark stores as part of its quick commerce business segment which are held by Scootsy on a leasehold basis.

Swiggy is planning to invest Rs 586.2 crore in technology and cloud infra. Currently, it has built technology infra on top of services provided by third-party technology and cloud infra vendors.

“We aim to innovate, iterate and improve our technology stack to enhance platform experience, offerings for users as well as our restaurant partners, merchant partners and brand partners, and improve operational efficiency.” Swiggy entered an arrangement with Amazon Web Services India effective till February 28, 2026, for availing services like cloud storage and support services, database, computation and analytics services, site recovery and firewall services.

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