Swiggy acquires hyperlocal logistics platform LYNK
The acquisition of Chennai-based LYNK will help Swiggy strengthen its food and grocery delivery network via an extensive retail distribution system.
has acquired Chennai-based on-demand logistics platform Ltd for an undisclosed amount, it said on Thursday.
The deal will help the Prosus-backed Swiggy strengthen its food and grocery delivery network through LYNK's extensive distribution channels. LYNK serves several FMCG brands including Hindustan Unilever, Nivea, ITC Ltd, Britannia, and Dabur.
LYNK will offer faster order-to-delivery turnaround and improved on-the-shelf availability through better fill rates to retail stores enabling them to increase sales and focus on customer satisfaction, Swiggy said in a blog.
Hyperlocal logistics firm LYNK enables FMCG brands to grow their retail presence through its network of over 1 lakh retail stores across the top eight cities of India including Chennai, Mumbai, Delhi, and Hyderabad.
Founded in 2015 by Shekhar Bhende and Abhinav Raja, LYNK also provides a full-stake technology platform for FMCG brands to diversify their distribution network, warehousing, inventory management and logistics operations.
With this acquisition, Swiggy enters India’s food and grocery retail market, which is among the world’s largest and fastest-growing, estimated to be greater than $570 billion in size and expected to grow at 8% year-on-year, the blog added.
Avendus was the sole financial advisor to LYNK and its shareholders on the transaction.
"Given our rapid growth, we believe we are uniquely placed to lead the digitisation of retail distribution in India. With Swiggy, we now hope to further accelerate our growth and double down on the tremendous opportunity before us. We are deeply encouraged by our interactions with Swiggy; both companies have an innate builder bias and I look forward to working together,” said Bhende, Co-founder of LYNK.
"Our experience in supply chain and logistics gives Swiggy the unique opportunity to help LYNK scale up their offerings and empower retailers to serve their customers better," Sriharsha Majety, CEO of Swiggy, said.
Swiggy has made five acquisitions since 2014. It bought restaurant tech platform Dineout from Times Internet in May 2022, aiming to widen its dining and rewards segment, and acquired morning grocery delivery provider Supr Daily in 2018, and rebranded it to InsanelyGood earlier this year.
The latest acquisition comes at a time when Swiggy is facing a slew of senior-level exits and valuation cuts by top investors, as it prepares for a public listing. Invesco, one of Swiggy's biggest investors, slashed the food delivery firm's valuation to $5.5 billion earlier this year.
Swiggy recorded higher average order value, and increased revenue from delivery fee and advertising sales for FY 2023, according to financial results published by its largest investor and global consumer internet group Prosus.
(The story was updated to fix a typo and to add that Avendus was the advisor to the transaction)
Edited by Affirunisa Kankudti