Food delivery giant Swiggy entered India's food and grocery retail market after it signed a definitive agreement to acquire Lynk Logistics Ltd., a tech-led retail distribution platform.
Lynk will continue to operate as an independent business and will be led by co-founder and Chief Executive Officer, Shekhar Bhende. It did not comment on how much Lynk was acquired for.
"With this acquisition, Swiggy enters India's food and grocery retail market, which is among the world's largest and fastest growing, estimated to be over $570 billion in size and expected to grow at 8% year-on-year," it said in a statement. "Post acquisition, Lynk will leverage Swiggy's strengths in technology and logistics to rapidly scale their existing platform."
The Chennai-based Lynk was founded in 2015 and is backed by Ramco Cements Ltd. It raised about $23 million to date, with its last funding being a Series A round in 2019, according to Tracxn.
Lynk connects FMCG brands to retail stores as an authorised distributor, offering brands improved on-the-shelf availability through better fill rates.
"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, chief executive officer, Swiggy.
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