M&A

M&A

Swiggy sells cloud kitchen business to Kitchens@

Business Line  

Swiggy has sold its cloud kitchen business to Loyal Hospitality, which rents out cloud kitchens under the brand Kitchens@, a cloud kitchen aggregator, in a share swap deal. The addition of ‘Swiggy Access' is expected to bolster the operations of Kitchens@ in four cities across 52 locations and over 700 kitchens. The current transaction enables a combined annual GMV of USD 65 million (INR 520 crore) for Kitchens@. The company aims to reach USD 100 million in revenue within the next 6 months and has secured letters of intent with over 40 national and international brands to partner with it. Swiggy launched Swiggy Access in 2017. The program allowed restaurant partners to establish kitchen spaces in neighbourhoods where they do not operate, with the goal of offering more variety and shortening delivery times for consumers. This is the latest business that Swiggy is getting out of. In January, Swiggy said it would be exiting the meat delivery business.