Swiggy, a leading foodtech company valued at over $10 billion, has made a significant move into the food and grocery retail sector by acquiring LYNK Logistics Ltd, an FMCG retail distribution company. This strategic acquisition allows Swiggy to expand its presence and enter the lucrative food and grocery retail market.
Following the acquisition, LYNK Logistics Ltd will maintain its autonomy as an independent business, with Shekhar Bhende, the Co-Founder and chief executive officer, at the helm. The leadership and operations of LYNK will remain unchanged, ensuring a seamless transition and continuity in the company’s direction under Bhende’s guidance.
“With this acquisition, Swiggy enters India’s food and grocery retail market, which is amongst the world’s largest and fastest growing, estimated to be more than $570 Bn in size and expected to grow at 8% year-on-year,” the company said in a statement.
Founded by Abinav Raja and Shekhar Bhende in 2015, LYNK provides a platform for leading FMCG brands to enhance their retail reach. With a vast network of over 100,000 retail stores spread across the top eight cities of India, LYNK offers valuable opportunities for these brands to expand their presence in the market.
LYNK utilizes its exclusive and comprehensive technology platform to drive the retail distribution value chain, encompassing warehousing, inventory management, and logistics operations. Its esteemed clientele comprises prominent companies such as Hindustan Unilever, ITC, Tata, Lakme, PepsiCo, Britannia, and many more.
“LYNK is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands. 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.
In a meeting held on July 12, the acquisition procedure of LYNK was approved by Ramco Cements, providing their support to the company.
Recently, both Swiggy and Zomato have been displaying a proactive approach towards acquiring and investing in smaller startups. As an illustration, Swiggy made a noteworthy move in May of the previous year by acquiring Dineout from its previous owner, Times Internet, in a deal worth $200 million. Following this acquisition, the founder of Dineout joined Swiggy and assumed leadership over Dineout’s operations as an independent entity.
As of July 2022, Swiggy has invested approximately $250 million in merger and acquisition deals. The prominent player in the foodtech industry has been actively pursuing inorganic growth strategies, aiming to enhance its technological infrastructure and strengthen its delivery capabilities through various strategic partnerships and acquisitions.
