Swiggy Acquires Retail Logistics Platform LYNK
- ByStartupStory | July 13, 2023
Swiggy, the leading food delivery platform, announced today its acquisition of Chennai-based on-demand logistics platform LYNK Logistics Ltd. This strategic move will enhance Swiggy’s food and grocery delivery network by leveraging LYNK’s extensive retail distribution system.
The acquisition of LYNK enables Swiggy, backed by Prosus, to further strengthen its presence in the food and grocery delivery space. LYNK’s wide-ranging distribution channels serve prominent FMCG brands, including Hindustan Unilever, Nivea, ITC Ltd, Britannia, and Dabur. By leveraging LYNK’s capabilities, Swiggy aims to offer faster order-to-delivery turnaround, improved on-the-shelf availability, and enhanced fill rates to retail stores. These enhancements will empower retailers to increase sales and focus on customer satisfaction.
LYNK, founded in 2015 by Shekhar Bhende and Abhinav Raja, not only provides on-demand logistics services but also offers a comprehensive technology platform for FMCG brands to optimize their distribution network, warehousing, inventory management, and logistics operations. With this acquisition, Swiggy expands its presence into India’s food and grocery retail market, one of the world’s largest and fastest-growing markets estimated to exceed $570 billion in size and projected to grow at 8% year-on-year.
Sriharsha Majety, CEO of Swiggy, expressed the company’s excitement about the acquisition, stating, “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.”
LYNK’s Co-founder Shekhar Bhende shared his enthusiasm for the partnership, saying, “Given our rapid growth, we believe we are uniquely placed to lead the digitization 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.”
This acquisition marks Swiggy’s commitment to expanding its offerings and capitalizing on new growth opportunities. Swiggy has made several strategic acquisitions, including restaurant tech platform Dineout in May 2022 and morning grocery delivery provider Supr Daily in 2018. The company continues to innovate and evolve its services to meet the dynamic needs of the market.
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