Swiggy will become a stakeholder in Kitchens@ through this all-equity transaction
BANGALORE, India, March 3, 2023 /PRNewswire/ — Kitchens@, a leading player in the rapidly growing cloud kitchen industry today announced the acquisition of Swiggy's Access Kitchens business through a share swap deal, effective as of 1st March 2023.
Swiggy pioneered the cloud kitchen model with the launch of Swiggy Access in 2017. The Swiggy Access program allows restaurant partners to establish kitchen spaces in neighbourhoods where they do not currently operate, with the goal of offering more variety and shortening delivery times for consumers. These 'delivery-only' kitchen spaces align with Kitchens@'s own cloud kitchen model. By leveraging Swiggy's analysis of local demand and selection of high-performing partners, Kitchens@ can diversify food options and meet customers' needs in specific areas.
Kitchens@ has long been focused on organizing the supply side of the food industry, utilizing its 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@, emphasizing the strength and stability of the company's financial performance and operations.
“The addition of Swiggy's Access kitchens will bolster the reach and operations of Kitchens@ in four cities across 52 locations and 700+ kitchens, providing customers with more convenient and efficient food delivery options,” said Junaiz Kizhakkayil, Founder & CEO of Kitchens@. “Our goal has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem,” added Kizhakkayil.
“Swiggy Access was started with the aim to bridge hyperlocal gaps in restaurant supply and solve for variety, quality, and convenience of food. Since its inception, Access has enabled several restaurant partners to innovate and expand their reach to new customers in a cost-effective manner. We are confident that Kitchens@ is fully equipped to nurture this ecosystem by innovating and building more supply. 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 (₹520 Cr) for Kitchens@. The company aims to reach $100 million in revenue within the next 6 months and has already secured Letters of Intent with over 40 national and international brands to partner with it using a Master Franchise Model. As it continues to expand, the company will focus on scaling operations across key demand areas in India through 'clusters.' These clusters will comprise kitchen hubs that cater to specific micro-markets within cities, allowing them to reach a wider customer base.
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