Swiggy Receives Approval to Launch Sports Division

264

Swiggy, a household name in India’s food and grocery delivery industry, is now entering a new arena—sports. On January 15, 2025, the company received approval from the Ministry of Corporate Affairs (MCA) to establish Swiggy Sports Private Limited, a wholly-owned subsidiary dedicated to sports activities. The move comes as part of Swiggy’s diversification strategy to create new revenue streams and expand its reach beyond food delivery. The newly incorporated entity will focus on areas such as sports team ownership, management, talent development, event organization, and acquiring broadcasting rights. Swiggy’s foray into sports aligns with its broader ambitions to innovate and stay competitive against long-time rival Zomato, which has also been making strides into lifestyle services and events.

Swiggy: A Pioneer in India’s Food-Tech Sector

Swiggy was founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini. Headquartered in Bengaluru, the startup revolutionized food delivery in India by offering a seamless app-based platform connecting customers, restaurants, and delivery partners. Over the years, Swiggy expanded its services to include grocery delivery under “Instamart,” quick food delivery through its “SNACC” app, and premium services like the invite-only “One BLCK” membership program.

Swiggy’s revenue model is primarily based on commissions from partner restaurants, delivery charges, and subscription plans such as Swiggy One. The company has raised significant funding from global investors, including SoftBank, Prosus Ventures, and Accel Partners, enabling it to scale operations and diversify offerings. In FY2024-25, Swiggy reported a 30% year-on-year growth in operating revenue, reaching INR 3,601.45 crore, while reducing net losses by 5% to INR 625.53 crore.

Why Swiggy is Entering the Sports Domain

The incorporation of Swiggy Sports Private Limited is part of the company’s broader diversification plan to reduce reliance on food delivery and capture new markets. The subsidiary will operate in sports activities, amusement, and recreation. Its core objectives include managing sports teams, developing talent, organizing events, and acquiring broadcasting and sponsorship rights.

Interestingly, Swiggy’s involvement in sports began last year when it acquired the rights to the Mumbai team in the World Pickleball League (WPBL). While initially framed as a limited engagement, the establishment of a dedicated sports arm signals a larger ambition. The company plans to leverage this platform to explore multiple business models, including sports promotions, facility operations, and event sponsorships.

Competitor Zomato’s Foray into Lifestyle and Events

Swiggy’s move into sports mirrors its rivalry with Zomato, which has also ventured into non-core areas. In 2023, Zomato acquired Paytm’s ticketing business for INR 2,048 crore, enabling its entry into live events, movie ticketing, and lifestyle services under the “District” brand. These expansions reflect the growing competition between the two food-tech giants, each striving to diversify revenue streams and increase market dominance.

Swiggy’s Recent Innovations and Broader Vision

Apart from its sports ambitions, Swiggy has been innovating aggressively. It recently launched the “SNACC” app for 15-minute food deliveries in Bengaluru and debuted “Swiggy Scenes,” a service enabling users to book events at partner restaurants. Another significant launch was the services marketplace app “Pyng Professional.” These initiatives indicate Swiggy’s commitment to creating a multi-dimensional ecosystem.

In December 2024, Swiggy introduced “One BLCK,” a premium membership program offering exclusive benefits. By diversifying its services, Swiggy aims to attract new customers, increase user retention, and solidify its position as a versatile brand.

The Road Ahead for Swiggy Sports

Although Swiggy CEO Rohit Kapoor initially downplayed the company’s intentions in the sports sector, the formation of Swiggy Sports Private Limited suggests a calculated long-term strategy. Kapoor clarified that the company’s immediate plans are limited to managing the Mumbai pickleball team, but the subsidiary’s broader mandate hints at future possibilities.

As sports gain popularity in India, particularly niche sports like pickleball, Swiggy’s involvement could unlock significant opportunities. The Swiggy company might explore synergies between India’s food-tech expertise and sports, such as promoting events through its platform or creating exclusive food delivery services during matches.

Learning for Startups and Entrepreneurs

Swiggy’s entry into sports offers valuable lessons for startups:

1. Diversification is Key: Expanding into new sectors helps mitigate risks and creates additional revenue streams.
2. Timing and Market Trends: Swiggy’s focus on pickleball, a growing sport, reflects its ability to identify emerging opportunities.
3. Brand Evolution: Constant innovation and service diversification can strengthen brand loyalty and attract new audiences.
4. Competitor Benchmarking: Understanding rival strategies, like Zomato’s lifestyle services, enables proactive planning.

About The Startups News

At The Startups News, we specialize in bringing the latest updates and insights about India’s dynamic startup ecosystem. Whether it’s news about Swiggy’s ventures or Zomato’s expansions, we ensure our readers stay informed about groundbreaking developments. Our platform offers actionable insights, industry trends, and success stories, making us a go-to resource for entrepreneurs, investors, and business enthusiasts.