Swiggy has entered into a definitive agreement to acquire LYNK, a retail logistics startup with a network of over 100,000 stores, the latest in a series of purchases by the Indian food delivery giant in the last two years.
The Bengaluru-headquartered startup, which counts Prosus, Accel and Invesco among its backers, said the acquisition of LYNK will help it expand into the retail distribution market, serving store operators.
Cement giant Ramco-backed LYNK helps fast-moving consumer goods firms grow their retail presence. LYNK supplies brands’ products to stores, streamlining the retail distribution process that also includes warehousing, inventory management, and logistics. The firm says it also helps stores with quicker order fulfillment, enhanced store stock availability, and ultimately better customer service and increased sales.
The Chennai-headquartered startup, which had raised about $23 million altogether and nearly all from Ramco, has been “growing 2.5x year-on-year with improved profitability,” it said.
On its website, LYNK identifies Hindustan Unilever, ITC, Tata, Lakme, Pepsico, Britannia, RedBull, Mars and Dabur among its customers. LYNK will continue to operate an independent brand after the acquistion, but will use Swiggy’s technology to scale the platform, the two firms said.
“LYNK is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands. Our experience in supply chain and logistics gives Swiggy the unique opportunity to help LYNK scale up their offerings and empower retailers to serve their customers better, ” said Sriharsha Majety, CEO of Swiggy, in a statement.
Thursday’s announcement is the latest asset Swiggy is putting on its table. The startup, valued at $10.7 billion in its previous funding, last year acquired restaurant tech platform Dineout and made a significant investment in bike taxi startup Rapido.