A big leap for Indian food tech decacorn Swiggy as it marks its foray into the retail food and grocery segment with the acquisition of LYNK Logistics Ltd, a tech-based FMCG company.
However, both companies did not disclose the financial details of the deal. A report by the Mint noted that Avendus Capital was the financial advisor to LYNK and its shareholders in this deal.
“After the acquisition, LYNK will continue to operate as an independent business led by co-founder and CEO Shekhar Bhende," the food tech giant said in a statement.
With the acquisition, Swiggy has stepped into India’s retail food and grocery segment, which as per media reports, is expected to become a $570 billion market in the coming time. It is also expected to grow at a rate of 8 per cent annually.
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Addressing the deal, Sriharsha Majety, CEO of Swiggy, said, “I am excited to have the LYNK team join Swiggy. 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."
Commenting on the acquisition, Shekhar Bhende, co-founder of LYNK, said, “Over the last few years, we have focused squarely on helping FMCG brands to meet their retail ambitions. Given our rapid growth, we believe we are uniquely placed to lead the digitization of retail distribution in India."
