Swiggy, the popular online food delivery startup, has announced its entry into the food and grocery retail market through the acquisition of LYNK Logistics Ltd, a tech-led FMCG retail distribution company. The financial details of the deal were not disclosed. Avendus Capital served as the sole financial advisor to LYNK and its shareholders for this transaction.
LYNK’s Role in FMCG Retail Distribution
Founded in 2015 by Abinav Raja and Shekhar Bhende, LYNK helps FMCG brands enhance their retail presence by leveraging its network of over 100,000 stores across India’s top eight cities. The company has experienced significant growth, more than doubling its size year-on-year, and improving profitability along the way.
LYNK’s Integrated Technology Platform and Value Proposition
LYNK employs a proprietary integrated technology platform that powers its retail distribution value chain, including warehousing, inventory management, and logistics operations. As an authorized distributor, LYNK collaborates with leading FMCG brands, connecting them with retail stores and providing a comprehensive solution to achieve their sales and growth objectives. By offering faster order-to-delivery turnaround and improved on-the-shelf availability, LYNK enables retail stores to increase sales and deliver better service to customers.
Leveraging Swiggy’s Strengths for Scale and Growth
With the acquisition, LYNK plans to leverage Swiggy’s technological expertise and robust logistics infrastructure to rapidly expand its existing platform. Sriharsha Majety, CEO of Swiggy, highlighted LYNK’s unique position in the retail distribution space. Majety expressed confidence in Swiggy’s ability to support LYNK’s growth and empower retailers to serve customers more effectively.
Swiggy’s Acquisition Strategy and Future Plans
Swiggy has been actively pursuing acquisitions to drive growth and strengthen its ecosystem. In the past, the company has acquired companies such as Dineout, Kint, and Scootsy. The acquisition of LYNK aligns with Swiggy’s vision to expand its presence in the retail market. The company aims to capitalize on the significant opportunities in the Indian retail industry. Which is one of the world’s largest and fastest-growing markets.
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