Swiggy's cloud kitchen company is acquired by Kitchens@ Access
By Team Startupcity | Thursday, 02 March 2023, 15:07 IST
Access Kitchen, a cloud kitchen division of Swiggy, has been acquired by cloud kitchen firm Kitchens@ in exchange for shares. Through the transaction, Swiggy becomes a shareholder in Kitchens@. According to Kitchens@, the total gross merchandise value will be around $65 million following the acquisition, and the business intends to raise it to $100 million.
Swiggy Access kitchens allowed restaurants, both online and offline brands, to open kitchen spaces in areas that they did not operate to ensure faster delivery. “The addition of Swiggy’s Access kitchens will bolster the reach and operations of Kitchens@'s in four cities across 52 locations and 700 kitchens, providing customers with more convenient and efficient food delivery options,” said Junaiz Kizhakkayil, chief executive offiecer of Kitchens@.
The development comes on the back of cost-cutting efforts at Swiggy. On January 20, the company said it was laying off employees and will be shutting down its meat business as its core food delivery business has slowed down, in addition to the adverse macroeconomic headwinds affecting tech companies as whole.
"Swiggy Access was founded with the goal of bridging hyperlocal supply gaps in restaurants and addressing issues with food variety, quality, and convenience. Since its start, Access has helped a number of restaurant partners innovate and reach out to new clients affordably. We are convinced that Kitchens@ has all the tools necessary to support this ecosystem through innovation and supply expansion. Rahul Bothra, Swiggy's chief financial officer, stated that Swiggy "continues to believe in the potential of this market and stays involved as an investor in Kitchens@".
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