Swiggy enters retail food and grocery segment with LYNK acquisition
FMCG retail distribution company, marking its foray into food and grocery retail market. The company did not disclose the financial details of the deal. Avendus Capital was the sole financial advisor to LYNK and its shareholders on this transaction.
“LYNK will continue to operate as an independent business post the acquisition led by cofounder and CEO Shekhar Bhende," the company said in a statement. Founded in 2015 by Abinav Raja and Shekhar Bhende, LYNK helps fast moving consumer good (FMCG) brands grow their retail presence through its network of more than 100,000 stores across the top eight cities of India. The company has grown more than 2 times year-on-year with improved profitability, the release said.
LYNK leverages a proprietary, integrated technology platform to power retail distribution value chain across warehousing, inventory management and logistics operations. It 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 also offers 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 Indian retail market is among the world’s largest and fastest growing, estimated to be more than $570 billion in size and expected to grow at 8% year-on-year. Post acquisition, LYNK will leverage Swiggy’s strength in technology and logistics to rapidly scale their existing platform. “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.
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