Swiggy Sells Its Cloud Kitchen Business To Kitchens@
Deal Street | Swiggy Sells Its Cloud Kitchen Business To Kitchens@
BANGALORE [BENGALURU, INDIA] – There is good action on the Swiggy deal street front! Kitchens@, a leading player in the rapidly growing Cloud Kitchen industry, has announced the acquisition of Swiggy’s Access Kitchens business through a share swap deal, effective as of 1 March 2023.
In layman’s language, Kitchens@ has acquired the Cloud Kitchen Business of Swiggy.
Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access in 2017. The Swiggy Access program allows restaurant partners to establish kitchen spaces in neighborhoods where they do not currently operate, with the goal of offering more variety and shortening delivery times for consumers.
These ‘delivery-only’ kitchen spaces align with Kitchens@’s own cloud kitchen model. By leveraging Swiggy’s analysis of local demand and selection of high-performing partners, Kitchens@ can diversify food options and meet customers’ needs in specific areas.
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Swiggy on Board as a Stakeholder in Kitchens@
The acquisition brings Swiggy on board as a stakeholder in Kitchens@, emphasizing the strength and stability of the company’s financial performance and operations.
Kitchens@ has long been focused on organizing the supply side of the food industry, utilizing its state-of-the-art cloud kitchen infrastructure, optimized supply chain network, culinary expertise, and cutting-edge technology. The company’s aggregator-neutral approach enables high-throughput brands to have an efficient online presence, driving hygiene and operational efficiency at scale.
Swiggy - Kitchens@ Deal | Reactions Pour In
Rahul Bothra, CFO of Swiggy, said: “Swiggy Access was started with the aim to bridge hyperlocal gaps in restaurant supply and solve for variety, quality, and convenience of food. Since its inception, Access has enabled several restaurant partners to innovate and expand their reach to new customers in a cost-effective manner. We are confident that Kitchens@ is fully equipped to nurture this ecosystem by innovating and building more supply. Swiggy continues to believe in the potential of this space and remains invested as a stakeholder in Kitchens@.”
Junaiz Kizhakkayil, Founder & CEO of Kitchens@ [in Picture], said: “The addition of Swiggy’s Access kitchens will bolster the reach and operations of Kitchens@ in four cities across 52 locations and 700+ kitchens, providing customers with more convenient and efficient food delivery options.” Kizhakkayil added: “Our goal has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem.”
The company aims to reach $100 million in revenue within the next 6 months and has already secured Letters of Intent with over 40 national and international brands to partner with it using a Master Franchise Model.
About Kitchens@
Kitchens@ comprises a Team of Food Experts. According to Kitchens@: “We know your pain points. Through the expertise developed over 100+ years of experience.”
The current transaction enables a combined annual GMV of $65 million (₹520 Cr) for Kitchens@.
The company aims to reach $100 million in revenue within the next 6 months and has already secured Letters of Intent with over 40 national and international brands to partner with it using a Master Franchise Model. As it continues to expand, the company will focus on scaling operations across key demand areas in India through ‘clusters.’
These clusters will comprise kitchen hubs that cater to specific micro-markets within cities, allowing them to reach a wider customer base.
About Swiggy
Founded in 2014, Swiggy is India’s leading on-demand convenience platform with a vision to elevate the quality of life for the urban consumer by offering unparalleled convenience.
It connects consumers to over 200,000 restaurant partners in hundreds of cities. Its quick commerce grocery service Instamart is present in over 25 cities.
Swiggy’s latest addition, Dineout, offers users experiences in high-use categories like dining out and events in 24 cities across the country. Using innovative technology, Swiggy provides a hassle-free, fast, and reliable delivery experience.
Every order delivered by Swiggy’s delivery executives, ensures a host of customer-centric features like lightning-fast delivery, no minimum order value, live order tracking, and 24/7 customer support.
Sources: PRNewswire, Kitchens@
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