Online food delivery platform, Swiggy, has acquired Mumbai-based online logistics startup, Scootsy. With this acquisition, Swiggy has announced its plans to strengthen Scootsy’s curated restaurant network and assist the brand grow to newer cities by offering the back of its operational excellence and backend strength. Post the all-cash acquisition, Scootsy will continue operating as an independent app.
Scootsy is an intra-city service that provides doorstep-delivery of restaurant and gourmet food, toys, beauty, electronics and more. For Swiggy, the acquisition aligns with its idea to provide a higher consumer experience and offer the most varied restaurant choices for customers. It will contribute in widening the breadth and selection of Swiggy’s current network of 40,000 restaurants by adding more curated restaurants to the list.
Indian Food Delivery Startup Swiggy Achieves Unicorn Status
Founded in 2015 by Rishi Khiani and former Burrp COO, Sandeep Das, Scootsy brings with it immense loyalty amongst a large number of curated restaurant partners, many of whom are exclusively with the platform. The startup is also known for an efficient ordering experience from a careful selection of restaurants, bakeries, and gourmet stores.
With Swiggy’s conducive ecosystem and the right resources for expansion, Scootsy will be able to take its business beyond Mumbai to 4-5 major Indian cities in the coming months.
“Scootsy is a well-loved brand that enjoys loyalty from both its restaurant partners and the consumer,” said Sriharsha Majety, CEO of Swiggy. “With a shared belief of providing a superior user experience, its addition will extend the convenience and reliability that Swiggy is synonymous with.”
“We, at Scootsy are excited to become a part of India’s largest food ordering and delivery platform,” said Sandeep Das, CEO of Scootsy. “As we continue to evolve with our much-loved user experience, our users will benefit from Swiggy’s operational excellence and deep understanding of the ecosystem.”
Scootsy raised USD 3.6 million in seed capital in April 2017. The amount for the current acquisitionhas been completed with USD 8 million. In June, Swiggy also reached the coveted unicorn status, in an investment round led by Naspers and DST Global. The food delivery platform raked in USD 210 million in funds, reaching a valuation of around USD 1.3 billion, allowing it to enter the billion-dollar club.
Truecaller Acquires Mumbai Based Fintech Startup Chillr
Swiggy, which was founded in August 2014, faces competition from restaurant search and discovery service Zomato and Food Panda India. Recently, Google also joined the food delivery race by launching Areo in April 2017.
Currently, with 40,000 restaurants under its wing, Swiggy boasts of a delivery fleet of around 40,000. There had been reports to the effect that the company had a three-fold rise in revenues in the last financial year, and that Swiggy had plans of expansion to new locations within the country while building a better logistics network to reach out to more customers in a more efficient way.
