Last Update: March 03, 2023, 17:20 IST
Swiggy pioneered the cloud kitchen model in 2017 with the launch of Swiggy Access. (file photo)
This acquisition brings Swiggy on board as a stakeholder in Kitchen@.
Kitchen@, a leader in the fast-growing cloud kitchen industry, on Friday announced the acquisition of Swiggy’s Access Kitchen business through a share swap deal, effective March 1, 2023. Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access. In 2017.
The Swiggy Access program allows restaurant partners to set up kitchen locations in neighborhoods where they do not currently operate, with the goal of offering greater variety to consumers and reducing delivery times. These ‘delivery-only’ kitchen spaces are in line with Kitchen@’s own cloud kitchen model analysis of local demand and selection of high-performing partners, allowing Kitchen@ to diversify food options and meet customer needs in specific regions Can do.
Kitchen@ has long been focused on streamlining the supply side of the food industry using 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 cleanliness and operational efficiency at scale.
This acquisition brings Swiggy on board as a stakeholder in Kitchen@, emphasizing the strength and stability of the company’s financial performance and operations.
Kitchen@’s Founder and CEO Junaij Kijakkayil said, “The addition of Swiggy’s Access Kitchen will enhance Kitchen@’s reach and operations across 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 Kizzkayil.
“Swiggy Access was launched with an aim to bridge the hyperlocal gap in restaurant supply and provide solutions for variety, quality and convenience of food. Since its inception, Access has enabled numerous restaurant partners to grow and expand their reach to new customers in a cost-effective manner. We are confident that Kitchen@ is fully equipped to nurture this ecosystem by innovation and creation of more supply. Swiggy continues to believe in the potential of this space and remains invested in Kitchen@ as a stakeholder,” said Rahul Bothra, CFO, Swiggy, adding that the current transaction would result in a combined annual value of $65 million (Rs 520 crore) for Kitchen@. Enables GMV.
The company aims to reach $100 million in revenue within the next 6 months and has received letters of intent with over 40 national and international brands to partner with it using the master franchise model. As it continues to expand, the company will focus on increasing operations in key demand areas in India through ‘clusters’. These clusters will include kitchen hubs that cater to specific micro-markets within cities, allowing them to reach a wider customer base.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)