New Delhi: Food delivery giant Swiggy is set to diversify its portfolio by venturing into the exciting world of sports and recreation. The company recently announced the formation of a new wholly-owned subsidiary dedicated to this burgeoning sector. While the new entity has yet to commence operations, it has ambitious plans to engage in a wide range of activities, including owning and managing sports teams, nurturing talent, organizing events, and operating sports facilities.
This strategic move was confirmed through an exchange filing, where Swiggy revealed that its board has approved the incorporation of the new subsidiary with a share capital of Rs 1 lakh. The company clarified in a post-earnings call that the subsidiary’s initial focus will be to house its newly acquired pickleball team, Team Mumbai. Swiggy’s acquisition of Team Mumbai for the inaugural World Pickleball League (WPBL), scheduled in Mumbai from January 24 to February 2, 2025, signals its serious intent in the sports arena.
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This expansion follows a growing trend of tech companies diversifying their offerings. Zomato, Swiggy’s main competitor in the food delivery space, recently made headlines by acquiring Paytm’s ticketing business for a staggering Rs 2,048 crore, marking its entry into the events sector.
The new Swiggy subsidiary has grand ambitions beyond pickleball. It plans to offer career services for aspiring athletes, acquire broadcasting and sponsorship rights, and promote various sports events through innovative business models. While the official name of the new entity is still under wraps, Swiggy has submitted a name application to the Ministry of Corporate Affairs and will unveil it once the incorporation process is complete.
This bold move by Swiggy is poised to shake up the sports and recreation landscape in India. With its established brand recognition, extensive network, and technological expertise, Swiggy has the potential to become a major player in this exciting and dynamic industry.
