Swiggy will become a stakeholder in Kitchens@ through this all-equity transaction
BANGALORE, India, March 3, 2023 /PRNewswire/ -- Kitchens@, a leading player in the rapidly growing cloud kitchen industry today announced the acquisition of Swiggy's Access Kitchens business through a share swap deal, effective as of 1st March 2023.
Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access in 2017 and allows restaurant partners to establish kitchen spaces in neighbourhoods. 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@ 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. The acquisition brings Swiggy on board as a stakeholder in Kitchens@, emphasizing the strength and stability of the company's financial performance and operations.
"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, Our goal has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem," said Junaiz Kizhakkayil, Founder & CEO of Kitchens@.
"Swiggy Access was started with the aim to bridge hyperlocal gaps in restaurant supply and solve for variety, quality, and convenience of food. 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@," said Rahul Bothra, CFO of Swiggy.
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.
About Swiggy:
Founded in 2014, Swiggy is India's leading on-demand convenience platform. Its quick commerce grocery service Instamart is present in over 25 cities. Using innovative technology, Swiggy provides a hassle-free, delivery experience.
For more information, please contact:
Loyal Hospitality Private Limited
Mr. Junaiz Kizhakkayil
Founder & CEO
junaiz@loyalhospitality.in
+91-9945888877
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