Food delivery platform Swiggy has vended its pall kitchens business, Access Kitchens, to Bengaluru-grounded pall kitchen start-up Kitchens@, in a share exchangedeal.Kitchens@ CEO Junaiz Kizhakkayil said the accession will increase their reach in 52 locales in four metropolises. “The addition of Swiggy’s Access kitchens will bolster the reach and operations of Kitchens@ in four metropolises across 52 locales and 700 kitchens, furnishing guests with more accessible and effective food delivery options,” he said. “Our thing has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem,” added Kizhakkayil.
With the trade of Access Kitchens, Swiggy will become a stakeholder in Kitchens@. The development comes a fortnight after the news broke that Swiggy was trying to vend Access ahead of its original public offer (IPO). Swiggy had gauged back the kitchen structure business from around 200 locales to 30- 35 ahead of the trade. “The addition of Swiggy’s Access kitchens will bolster the reach and operations of Kitchens@’s in four metropolises across 52 locales and 700 kitchens, furnishing guests with more accessible and effective food delivery options,” Kitchens@ author Junaiz Kizhakkayil was cited as saying. Swiggy’s CFO Rahul Bothra was cited in the report as saying that the foodtech mammoth launched Access to bridge gaps in eatery force. “We’re confident that Kitchens@ is completely equipped to nurture this ecosystem by instituting and erecting further force.
Swiggy continues to believe in the eventuality of this space and remains invested as a stakeholder in Kitchens@,” Bothra added. While Swiggy Access ’ being network, tech and outfit are anticipated to bolster Kitchens@, the trade is a cost- cutting exercise for Swiggy. Ahead of its IPO, the foodtech decacorn is looking to bring down its cash burn and consolidate its business verticals. It also fired 380 workers before this time, citing business restructuring and cost-slice. Swiggy also shut down one of its private markers The Bowl Company in Delhi- NCR and its meat business, citing perpetration. Swiggy reported a net loss of INR Cr in FY22, a2.2 X jump from INR Cr in FY21 as the growth in charges outpaced the profit growth.