Online food delivery platform and recent unicorn, Swiggy today said that it has acquired Mumbai-based delivery platform Scootsy that delivers a variety of items from food, dishes, dessert to home decor, stationary, toys and games and much more. It was an all-cash acquisition for approximately Rs 50 crore. Not only will this move strengthen Scootsy's curated restaurant network and help it expand to newer cities, it is also a step towards Swiggy's plan of foraying into hyperlocal delivery. In a statement Swiggy said that Scootsy will continue to operate as an independent app post acquisition.
Commenting on the development, Swiggy CEO Sriharsha Majety said, "With a shared belief of providing a superior user experience, its addition will extend the convenience and reliability that Swiggy is synonymous with." As Swiggy brings with it a conducive ecosystem and the right resources for expansion, the acquisition will enable Scootsy's expansion across Mumbai as well as propel its foray into 4-5 major Indian cities in the coming months, the statement said.
"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 CEO Sandeep Das said. The acquisition will extend the breadth and selection of company's existing network of 40,000 restaurants by adding more curated restaurants to it, Swiggy said.
Scootsy was founded in 2015 within the Antfarm business incubator. Last year Scootsy raised $3.6 million in funding from Agnus Capital and Khattar Holdings.
This acquisition is in line with Swiggy's expansion plans. The online food delivery app is planning to start delivery for categories like medicines and groceries in their diversification strategy. According to reports, the "concierge-like service" would enable buying and delivery of products from any store in the city including grocery, pharmacies, groceries, flower and gift shops. As per the report, the service would also include a customer-to-customer pick-up and drop service.
Newly armed with the latest round of funding, Swiggy has been expanding its delivery network as well. It now boasts a 55,000-executives strong delivery fleet from 30,000 at the beginning of the year and is aiming to almost double their fleet in six to nine months.
The company recently bagged $210 million in funding by backers DST Global, Naspers, Meituan-Dianping and Coatue Management that took their valuation to $1.3 billion.
(Edited by Anwesha Madhukalya)
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today