Rs 3,750 crore IPO: Swiggy plans to expand dark stores, investments in tech and cloud infrastructure

Food delivery platform Swiggy, which is planning to raise Rs 3,750 crore through a fresh issue of shares, plans to use over Rs 982.40 crore towards investments in its material subsidiary, Scootsy. A material subsidiary is the one which has a significant impact on the consolidated revenues or assets of the parent company.

Out of the total investment allocated for Scootsy, Rs 559.10 crore will be utilised for opening about 538 dark stores, and the rest, Rs 423.30 crore, will go for license payments. A strong network of dark stores (a retail distribution centres for online orders) is essential for quick commerce players, especially to increase its market share.