Swiggy is an upcoming online food delivery startup which has confirmed that it has acquired Scootsy an on-demand delivery platform in an all-cash deal to strengthen its position in the food-tech market against players like Zomato.
With this acquisition, Swiggy hopes to boost its delivery service and expand its services to newer markets. Although Swiggy hasn’t shared the financial details about the deal yet but it has been come to light from the people associated with the deal that Swiggy acquired Scootsy for about Rs 50 crore. “With a shared belief of providing a superior user experience, its (Scootsy’s) addition will extend the convenience and reliability that Swiggy is synonymous with,” said Sriharsha Majety, CEO, Swiggy in a statement. The deal will add a lot of promise to Swiggy’s 40,000 strong restaurant network across India.
Until now, Scootsy carried out its operations in multiple categories like restaurants, bakeries, gourmet stores and gifting shops and now even after its acquisition will continue to operate as an independent app. Scootsy currently delivers about 2000 orders per day and has around 700 delivery agents in Mumbai across its food and non-food delivery operations. Swiggy delivers as many as around 5,00,000 orders per day and has a task force of 55,000 all over India.
It is quite remarkable that start ups providing delivery of food parcels on online orders have seen quite a lot of interest with an investment of around half a billion dollars in such firms by some of the world’s biggest internet investors and companies. Swiggy recently became the second biggest food-tech entity valued over $1 billion in the food tech industry as it raised $210 million in a funding round led by Naspers and DST Global. After this acquisition, Swiggy would certainly be aiming to improve its position further by raising its quality standards and expanding its facet of services.