Swiggy, an Indian food and grocery delivery firm, announced that it will invest up to Rs 1,000 crore ($115.47 million) in its supply chain subsidiary, as it continues to expand its fast-growing quick-commerce arm Instamart.

Scootsy offers warehouse management and processing services to help wholesalers and retailers improve their order delivery and shipping processes.

Swiggy stated that its investment in Scootsy, which follows the Rs 1,600 crore it made in December, will be made in one or more tranches as part of the company's business expansion.

Swiggy has increased investments in its quick-commerce arm Instamart, similar to what rival Zomato, which recently changed its name to Eternal did with Blinkit. Both aim to deliver items ranging from groceries to electronics within 10 minutes or less.

Food delivery remains the cash cow for both Zomato and Swiggy, but the burgeoning sector is growing faster. However, increased investments in quick commerce to gain market share have put pressure on both companies' margins.

From Rs 3,049 crore in Q3FY24 to Rs 3,993 crore, the company's consolidated revenue from operations grew 31% year over year. From Rs 3,130.9 crore in Q3FY24 to Rs 4,095.8 crore in Q3FY25, Swiggy's consolidated total income grew by 30.8 percent.

As stated by the company to the regulator, it aimed to attain "positive adjusted Ebitda by the third quarter of FY26."