Swiggy, a popular on-demand food and grocery delivery service, has entered into an agreement to acquire LYNK Logistics Limited, a retail distribution platform. LYNK serves as an authorized distributor for leading FMCG (Fast-Moving Consumer Goods) brands, connecting them with retail stores. This acquisition marks Swiggy’s entry into India’s massive $570 billion food and grocery retail market. Additionally, it brings a profitable business unit to Swiggy’s portfolio and holds potential synergies with its quick delivery service, Instamart. Read More Business News on our website.
LYNK, backed by Ramco Industries, has experienced significant growth and improved profitability. The company leverages its proprietary technology to ensure faster order-to-delivery turnaround, better on-the-shelf availability, and enhanced fill rates for retail stores. It operates as one of the largest tech-enabled FMCG retail distribution companies in India, enabling FMCG brands to expand their retail presence through a network of over 100,000 retail stores in the top eight cities of the country. LYNK manages various aspects of the retail distribution value chain, including warehousing, inventory management, and logistics operations.
Swiggy’s majority stakeholder, Prosus, reported increased losses for the company in the financial year 2023. Swiggy’s losses amounted to approximately $545 million, an 80% increase compared to the previous year. This rise was attributed to investments in Instamart, a service offered by Swiggy. Despite the increased losses, Swiggy’s core food delivery business turned profitable in March 2023, excluding employee stock ownership plan (ESOP) costs. Swiggy’s gross merchandise value (GMV) grew modestly to $2.6 billion in FY23, representing a 13% increase from FY22.
Following the acquisition, LYNK will continue to operate as an independent business. The company plans to leverage Swiggy’s technology and logistics strengths to accelerate the growth of its existing platform.