Indian food delivery giant Swiggy has made another significant acquisition, this time acquiring retail logistics startup LYNK. With this move, Swiggy is entering the retail distribution market and expanding its services to store operators. LYNK, backed by major investors and known for its brand-first, tech-led operating model, aligns well with Swiggy’s growth objectives.
The acquisition of LYNK allows Swiggy to tap into the retail distribution space by leveraging LYNK’s extensive network of over 100,000 stores. LYNK specializes in supporting fast-moving consumer goods (FMCG) firms in improving their retail presence. By optimizing the distribution process, including warehousing, inventory management, and logistics, LYNK helps brands enhance order fulfillment, stock availability, and overall customer service.
LYNK has experienced significant success with support from key players like Ramco and renowned clients such as Hindustan Unilever, ITC, Tata, and PepsiCo. The startup raised around $23 million in funding, primarily from Ramco, and has shown impressive year-on-year growth, with improved profitability.
Despite the acquisition, LYNK will maintain its independence as a brand. However, it will leverage Swiggy’s technological expertise to scale its platform more rapidly. The combined capabilities of Swiggy and LYNK create an opportunity to empower retailers in delivering more effective customer service.
Sriharsha Majety, CEO of Swiggy, expressed excitement about the acquisition, emphasizing LYNK’s unique position in the retail distribution space. Majety highlighted the potential for Swiggy to enhance LYNK’s offerings through its supply chain and logistics expertise. The partnership aims to equip retailers with better tools to serve customers and drive growth.
Swiggy’s acquisition of LYNK adds to its growing portfolio of strategic assets. With a valuation of $10.7 billion from previous funding, Swiggy has recently made moves like acquiring restaurant tech platform Dineout and making a significant investment in bike taxi startup Rapido. These strategic maneuvers position Swiggy as a key player in India’s food technology and delivery industry.
Swiggy’s acquisition of LYNK demonstrates its ambition to diversify its services and capitalize on the retail distribution market. By combining their strengths, Swiggy and LYNK aim to empower retailers, enhance customer experiences, and drive business growth. As Swiggy expands its portfolio, the company solidifies its position as a prominent player in India’s ever-evolving food technology landscape.