Swiggy Gets Approval from Corporate Affairs Ministry to Launch Sports Division

On January 15, 2025, Swiggy announced that the Ministry of Corporate Affairs (MCA) has approved the formation of a new subsidiary, Swiggy Sports Private Limited. This subsidiary will focus on a variety of sports-related activities and operations. The move aligns with Swiggy's broader diversification strategy aimed at expanding its revenue streams and competing more effectively with its rival, Zomato.

Swiggy's New Sports Subsidiary

The newly incorporated entity, Swiggy Sports Private Limited, will operate as a wholly-owned subsidiary of Swiggy, focusing on the sports, amusement, and recreation sectors. According to Swiggy's filing with the regulatory authorities, the primary functions of the subsidiary will include:

• Sports Team Ownership: Swiggy plans to venture into owning and managing sports teams.

• Talent Development: The subsidiary will also focus on nurturing new sports talent.

• Event Organization: It will be involved in organizing sports-related events and competitions.

• Broadcasting and Sponsorship: The subsidiary will acquire broadcasting rights and sponsorships for various sports events.

• Facility Operations: Swiggy intends to manage sports facilities as part of its new operations.

• Promotion of Sports Events: Various business models will be employed to promote and manage sports events.

The approval by the Ministry of Corporate Affairs (MCA) marks a significant step in Swiggy's expansion beyond its food delivery roots.

Swiggy’s Diversification Strategy

Swiggy’s foray into the sports sector is part of a wider plan to diversify its business operations. The company aims to create new revenue streams that will help it compete with Zomato, which recently launched a similar strategy with its 'District' platform. Zomato's entry into the lifestyle sector included areas like dining, sports ticketing, shopping, and more, as it sought to expand beyond food delivery.

Swiggy’s sports arm will not only focus on team ownership but will also emphasize other key aspects of the sports industry, including media rights and event management. This move illustrates Swiggy's efforts to broaden its business scope and stay competitive in a rapidly evolving market.

Zomato's Counter Move in Lifestyle Services

Swiggy's move into the sports sector follows closely after Zomato's shift into lifestyle services. In August 2024, Zomato introduced 'District,' a platform designed to consolidate its dining, ticketing, and live performance businesses. District covers sports ticketing, shopping, and even staycations. This expansion allows Zomato to compete with Swiggy not only in the food delivery space but also in new domains.

Swiggy’s sports division seems set to take the rivalry between these two giants beyond food delivery, with a focus on capitalizing on sports, entertainment, and leisure activities. It remains to be seen how these two companies will evolve as they continue to diversify and expand their offerings.

Swiggy's Pickleball Team Ownership

In a move that signaled its interest in sports, Swiggy also made headlines in November 2024 by acquiring the rights to a team in the World Pickleball League, specifically a team for the city of Mumbai. While Swiggy clarified at the time that it was not significantly entering the sports business, the acquisition marked a step into sports involvement.

Swiggy’s CEO, Rohit Kapoor, had emphasized that the company’s involvement in the sports business would remain limited for now. Kapoor stated that their interest in the World Pickleball League was more about observing the growing popularity of the sport rather than making large-scale investments in sports events or other activities.

The Future of Swiggy's Sports Subsidiary

While Swiggy’s future plans for its sports arm are still not fully clear, the company has shown interest in developing its sports portfolio. Swiggy's limited but strategic involvement in sports events, such as its stake in the World Pickleball League, may pave the way for further ventures in the coming years. It remains to be seen whether Swiggy will expand its sports offerings or maintain its presence as a more niche player in this industry.