The Busy Brains
14 Jul 2023
Foodtech giant Swiggy has finalized the acquisition of LYNK Logistics, a leading retail distribution platform. This move allows Swiggy to enter India's thriving food and grocery retail market, estimated to be over $570 billion in size. LYNK's tech-driven model and strong partnerships with FMCG brands will enhance Swiggy's capabilities and expand its reach in the retail sector.
Swiggy has announced its definitive agreement to acquire LYNK Logistics, positioning itself in India's lucrative food and grocery retail market.
LYNK, founded by Abinav Raja and Shekhar Bhende in 2015, has established a prominent presence by facilitating retail expansion for leading FMCG brands across India's top eight cities.
Following the acquisition, LYNK will operate independently under the continued leadership of CEO Shekhar Bhende. The startup has achieved impressive growth, with a 2.5x year-on-year increase and enhanced profitability. Its integrated technology platform efficiently manages warehousing, inventory, and logistics, driving the entire retail distribution value chain.
Swiggy's entry into India's food and grocery retail market, valued at over $570 billion and projected to grow at 8% annually, is a strategic move facilitated by the acquisition of LYNK. As an authorized distributor, LYNK connects FMCG brands with retail stores, streamlining order-to-delivery processes and ensuring on-the-shelf availability. The acquisition enables Swiggy to leverage LYNK's established network and expand its services in this rapidly growing sector.
By combining Swiggy's technological prowess and logistics expertise with LYNK's brand-focused operating model, both companies aim to revolutionize retail distribution. Sriharsha Majety, CEO of Swiggy, expressed excitement about integrating LYNK into the Swiggy ecosystem, highlighting the potential for accelerated growth and improved customer service.
LYNK's CEO Shekhar Bhende shared his enthusiasm for the partnership, emphasizing their shared vision of digitizing retail distribution. With Swiggy's support, LYNK aims to scale its offerings and drive further industry transformation. The synergies between the two companies' builder mindset create a strong foundation for collaboration and success in the evolving retail landscape.