Swiggy to transfer ownership of digital-first food brands to Kouzina; stock slips 2%

Swiggy Ltd announced on Monday that it entered into a strategic agreement with Kouzina Food Tech to acquire exclusive licences for its digital-first food brands, including The Bowl Company, Homely, Soul Rasa, and Istah. "This move is set to allow Kouzina to manage their operations and growth, with Swiggy transferring full ownership upon meeting certain conditions. The partnership aligns with Kouzina's asset-light business model, optimising its expansion strategy," the food and grocery delivery major stated.

Arpit Mathur, VP at Swiggy, emphasised the strategic move, stating, "Swiggy's food brands-including The Bowl Company, Homely, and others were launched to address gaps in restaurant supply and meet the demand for variety and convenience in food delivery. These brands have filled key market whitespaces and inspired restaurant partners to innovate, ultimately benefiting consumers. With its expansive digital-first F&B platform and asset-light business model, Kouzina is well-positioned to scale these brands to new heights."

Gautam Balijepalli, Co-founder & CEO of Kouzina, highlighted the impact of the transaction, remarking, "This transaction further cements our position as a leading food services company in India and accelerates our growth trajectory. The Bowl Company is a gold standard in digital-first F&B brands, having cracked the code on affordability, consistency, and consumer love. Homely, Istah, and Soul Rasa have also seen fantastic customer loyalty over the years."

The Bowl Company, a key player in Swiggy's portfolio, was launched in 2017 and is known for its high-quality, single-serve meals. Kouzina's strategic agreement is expected to drive further market penetration for these brands.

Under Kouzina's management, these brands are anticipated to expand into new markets using their asset-light model. Homely is already operational in select Bangalore locations, with plans for The Bowl Company to launch soon in additional cities. This initiative positions Kouzina to leverage Swiggy's established brand reputation while enhancing its own growth and market presence.

On the stock-specific front, shares of Swiggy were last seen trading 2.46 per cent lower at Rs 335.40.