Last updated: March 03, 2023, 5:20 PM IST
Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access in 2017. (File photo)
The acquisition brings Swiggy on board as a stakeholder in Kitchens@
Kitchens@, a leading player in the fast-growing cloud kitchen industry, announced Friday the acquisition of Swiggy’s Access Kitchens business through a share swap agreement, effective March 1, 2023. Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access in 2017 .
The Swiggy Access program enables restaurant partners to furnish kitchen spaces in neighborhoods where they do not currently operate, with the goal of offering more variety and reducing delivery times for consumers. These “delivery-only kitchens” align with Kitchens@’s proprietary cloud kitchen model analysis of local demand and selection of high-performing partners. Kitchens@ can diversify food options and meet customer needs in specific areas.
Kitchens@ has long focused on organizing the supply side of the food industry leveraging 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 hygiene and operational efficiency at scale.
The acquisition brings Swiggy on board as a stakeholder in Kitchens@, highlighting the strength and stability of the company’s financial performance and operations.
“The addition of Swiggy’s Access kitchens will strengthen Kitchens@’s reach and operations in four cities across 52 locations and 700+ kitchens, providing customers with more convenient and efficient food delivery options,” said Junaiz Kizhakkayil, Founder and CEO from Kitchens@. “Our goal has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem,” adds Kizhakkayil.
“Swiggy Access was founded with the goal of bridging hyper-local gaps in restaurant offerings and finding solutions for food variety, quality and convenience. Since its inception, Access has enabled several restaurant partners to cost-effectively innovate and expand their reach to new customers. We are confident that Kitchens@ is fully equipped to nurture this ecosystem by innovating and building more offerings. Swiggy continues to believe in the potential of this space and remains invested as a stakeholder in Kitchens@,” said Rahul Bothra, CFO of Swiggy. The current transaction enables a combined annual GMV of $65 million (Rs 520 Cr) for Kitchens@.
The company is targeting $100 million in sales within the next 6 months and has already secured letters of intent with over 40 national and international brands to partner with the company using a Master Franchise Model. As the company continues to expand, it will focus on scaling operations in key demand areas in India through clusters. These clusters will include kitchen hubs targeting specific micromarkets in cities, enabling them to reach a wider customer base.
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(This story has not been edited by News18 staff and was published from a syndicated news agency feed)
