Swiggy to expand into sports business and recreation sector

Swiggy, the prominent food delivery company, has announced its expansion into the sports and recreation sector with the establishment of a new subsidiary. This wholly-owned subsidiary will focus on various sports and recreational activities, although it has not yet commenced operations.

In a recent exchange filing, Swiggy disclosed that its board has approved the incorporation of this new subsidiary. The new entity will be fully owned by Swiggy, with a share capital of Rs 1 lakh.

Last week, Swiggy ventured into the expanding pickleball scene in India by acquiring Team Mumbai for the inaugural World Pickleball League (WPBL), scheduled in Mumbai from January 24 to February 2, 2025. This move follows Zomato's entry into the events sector in August, marked by its Rs 2,048 crore acquisition of Paytm's ticketing business.

The new company will engage in a range of activities, including owning and managing sports teams, developing talent, organizing events, and operating facilities. Additionally, it will offer career services, acquire broadcasting and sponsorship rights, and promote sports events through different business models. Swiggy has submitted a name application to the Ministry of Corporate Affairs, and the name will be revealed once the entity is incorporated.

The company clarified during a post-earnings call that the subsidiary will initially focus on housing the team it acquired in the World Pickleball League (WPBL).