Foodtech major Swiggy has acquired Mumbai-based on-demand delivery startup Scootsy. The all-cash deal is likely to be around Rs 50 crore.
With this acquisition, Scootsy will continue to operate as an independent app while Swiggy will strengthen the hyperlocal-delivery platform’s network to expand into newer cities.
Besides, Scootsy will help to increase the selection of Swiggy’s existing network of 40,000 restaurants by adding more curated restaurants to it.
Some sources also added that the Scootsy’s acquisition by Swiggy is another example of distress sale. The firm was going through a cash crunch situation and employees haven’t been paid regularly.
Founded in 2015 by Rishi Khiani and Sandeep Das as an on-demand delivery platform, Scootsy was a part of Mumbai-based incubator firm Ant Farm. It essentially delivers a wide variety of products, such as food, electronics, fashion apparel and accessories, toys, books, and many others items.
However, a majority of the company’s business comes from food delivery order. It reportedly doing around 1,600 orders on a daily basis.
The startup had raised $3.6 million in a bridge round of investment from Bengaluru-based Agnus Capital and Singapore-based investment firm Khattar Holdings in April 2017.
The development comes at a time when the Meituan Dianping-backed company is looking to ramp up its hyperlocal delivery chain through some acquisition (for example SuprDaily).
Of late, Zomato and Swiggy have emerged as the biggest platform in foodtech space. While the fight over daily and monthly orders has become the most important metrics, both players are eyeing to engage their customers through loyalty programmes.
So far, Swiggy has an edge over Zomato in terms of monthly orders (Swiggy: 14 million, Zomato: 11 million). With the acquisition of Scootsy, 48East and in talks with SuprDaily, the foodtech Unicorn will add more orders in its kitty.
The development was first reported by Moneycontrol and later confirmed by company’s statement to IANS.
