Swiggy sells some of its private label brands to cloud kitchen operator Kouzina
While the deal amount is undisclosed, Swiggy is expected to transfer ownership upon fulfillment of pre-approved conditions.
Food delivery platfrom Swiggy on Tuesday said it is planning to transfer its private label brands, namely The Bowl Company, Homely, Soul Rasa, and Istah to Kouzina for an undisclosed amount.
Swiggy will enter into an exclusive licensing agreement with Kouzina, which is expected to manage end-to-end operations and growth of these brands. Upon fullfillment of certain pre-agreed conditions, Swiggy will transfer full ownership of the brands, it said in an exchange filing.
This transaction comes amid growing disagreements between National Restaurants Association of India and food delivery platforms like Swiggy and Zomato. The restaurants body has been worried about the growth of private labels and partial treatment to these restaurants by marketplaces.
“Swiggy’s food brands, including The Bowl Company, Homely, and others were launched to address gaps in restaurant supply and meet the demand for variety and convenience in food delivery," says Arpit Mathur, VP at Swiggy.
Kouzina, a cloud kitchen operator, has a spectrum of brands under its umbrella including WarmOven, KaatiZone, MomoZone, and Mad Over Parathas, among others. The company recently acquired Vasudev Adiga's and invested in Shark Tank fame startup MOPP Foods.
"The Bowl Company is a gold standard in digital-first F&B brands, having cracked the code on affordability, consistency, and consumer love. Homely, Istah, and Soul Rasa have also seen fantastic customer loyalty over the years," said Gautam Balijepalli, Co-founder and CEO of Kouzina.
"Under Kouzina, we’ll scale these brands even faster, expanding into new markets through our asset-light expansion model. Homely is live in select Bangalore locations, with The Bowl Company launching later this week. We're also preparing to expand to more cities soon," he added.