Foodtech giant Swiggy acquires LYNK Logistics for an undisclosed sum

Foodtech giant Swiggy today announced it has entered into a definitive agreement to acquire LYNK Logistics.

Post-acquisition, LYNK will continue to operate as an independent business led by Co-founder and CEO Shekhar Bhende. 

Founded in 2015 by Abinav Raja and Shekhar Bhende, LYNK enables leading FMCG brands to grow their retail presence through its network of 100,000+ retail stores across the top 8 cities of India.

According to the company's statement, The startup has demonstrated strong performance, growing 2.5x year-on-year with improved profitability. It leverages a proprietary, integrated technology platform to power the entire retail distribution value chain across warehousing, inventory management and logistics operations.

With this acquisition, Swiggy said it enters India’s food and grocery retail market, which is amongst the world’s largest and fastest-growing, estimated to be > 570B$ in size and expected to grow at 8% year-on-year.

LYNK works with leading FMCG brands as an authorized distributor, connecting them to retail stores and offering a one stop solution to achieve their sales and growth goals. It claims to offer faster order-to-delivery turnaround and improved on-the-shelf availability through better fill rates to retail stores enabling them to increase sales and serve their customers better.

The acquisition would also help LYNK to leverage Swiggy’s strength in technology and logistics to scale its existing platform rapidly.

“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,” said Sriharsha Majety. 

“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. With Swiggy, we now hope to further accelerate our growth and double down on the tremendous opportunity before us. We are deeply encouraged by our interactions with Swiggy; both companies have an innate builder bias and I look forward to working together,” said Shekhar Bhende.

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