Swiggy has entered into a strategic agreement with food service platform Kouzina for the exclusive license of its digital-first food brands. These platforms include The Bowl Company, Homely, Soul Rasa, and Istah, the company said in an exchange filing on Tuesday.
Now, Kouzina will manage end-to-end operations, innovation, and the growth for four food brands. Swiggy will transfer the full ownership of these brands to Kouzina once it fulfils certain pre-agreed conditions.
“Swiggy’s food brands were launched to address gaps in restaurant supply and meet the demand for variety and convenience in food delivery. These brands have filled key market whitespaces and inspired restaurant partners to innovate, ultimately benefitting consumers,” said Arpit Mathur, Vice President at Swiggy in the filing.
“With its expansive digital-first F&B platform and asset-light business model, Kouzina is well-positioned to scale these brands to new heights,” he added.
Speaking about the deal, Kouzina CEO and cofounder Gautam Balijepalli ensured the growth of these food brands even faster and expansion into new markets through its model. “This transaction further cements our position as a leading food services company in India and accelerates our growth trajectory,” he said.
“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. 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.
It is pertinent to note that Kouzina is operating in more than 100 cities with over 250 kitchen partners. Recently, the Bengaluru-based foodtech platform has acquired South Indian brand Vasudev Adiga’s and also invested in Shark Tak-famed MOPP Foods.
This came after Swiggy shut down its hyperlocal delivery service Genie in several major cities across India. At the same time, Swiggy has expanded its 10-minute delivery service, Bolt, to over 500 cities. Rather than signalling a retreat from hyperlocal delivery, this points to realignment, investing more heavily in offerings with stronger margins and long-term potential.
Swiggy's shares were trading around 0.2% lower at Rs 343.05 at 2 pm on the Bombay Stock Exchange (BSE).
