Swiggy Expands Horizons with Entry into Sports, Launches Swiggy Sports Pvt. Ltd.
- ByStartupStory | January 17, 2025
In a strategic move to diversify beyond food and grocery delivery services, Swiggy has officially entered the sports domain. The company received approval from the Ministry of Corporate Affairs (MCA) to incorporate Swiggy Sports Pvt. Ltd., a wholly owned subsidiary. This expansion marks Swiggy’s intent to venture into sports team ownership, management, talent development, and event organization, among other related activities.
Swiggy disclosed the development during its July-September earnings call, emphasizing the primary objectives of the new entity. These include “sports team ownership, management, talent development, event organisation, facility operations, career services, acquiring broadcasting and sponsorship rights, and promoting sports events through various business models,” as mentioned in its stock exchange filing.
The formation of Swiggy Sports coincides with the company’s acquisition of Team Mumbai, co-founded by former Indian tennis players Gaurav Natekar and Arati Ponnappa Natekar, in November 2023. Team Mumbai competes in the World Pickleball League (WPBL), India’s first global franchise-based pickleball league. The league’s inaugural season is set to take place from January 24 to February 2, 2025.
Commenting on Swiggy’s foray into sports, Sumant Pradhan, a long-term pickleball enthusiast and senior aviation executive, said, “Swiggy entering this segment would be a significant move, this sport (pickleball) is growing among all age groups, and the ripple effect of its popularity in tier-1 cities is slowly being seen in smaller towns as well who are adapting this game. Currently, the segment is fragmented with many operators, and a player like Swiggy would formalise the operations for sure.”
Swiggy’s rival, Zomato, had previously made a similar diversification move in August 2023 by launching District to consolidate its dining and ticketing business after acquiring Paytm’s events ticketing business for Rs 2,048.4 crore.
Swiggy’s immediate strategy for scaling its sports division remains unclear. However, Rohit Kapoor, Swiggy’s Food Marketplace CEO, stated during a December 2023 analyst call that Swiggy was not entering the sports business in any significant way.
This expansion comes as Swiggy shows signs of improving financial health. The company reduced its losses by nearly 5% year-on-year (YoY) to Rs 625.53 crore in the second quarter of FY25, with operating revenue increasing by 30% YoY to Rs 3,601.45 crore during the same period.
With the rising popularity of pickleball in India, Swiggy’s move into sports could potentially create a ripple effect in the industry. The company’s entry into this growing segment is poised to bring formalization and professional management to a space that is currently fragmented, potentially revolutionizing India’s sports ecosystem.
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