Swiggy Scoots Away Another Acquisition For Growth
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
It was only a matter of weeks ago that Swiggy broke barriers and joined India’s Unicorn Club, after just four years of operations. And it seems the growth trajectory of Swiggy is on a roller coaster speed. The food delivery startup has now acquired on-demand delivery platform Scootsy.
Entrepreneur India takes a look at how the acquisition will further strengthen Swiggy’s position in the e-delivery services sector.
The Acquisition of Scootsy
In happening news in the ever-evolving Indian startup ecosystem, Swiggy announced the acquisition of Scootsy. Scootsy has an intracity service that gets the best of restaurant and gourmet food, toys, beauty, electronics and more to the customer’s doorstep.
Talking about the acquisition, Sriharsha Majety, CEO, Swiggy said in a statement that Scootsy is a well-loved brand that enjoys loyalty from both its restaurant partners and the consumer. “With a shared belief of providing a superior user experience, its addition will extend the convenience and reliability that Swiggy is synonymous with,” he said.
With the acquisition, Swiggy aims to further strengthen Scootsy’s curated restaurant network and help the brand expand to newer cities on the back of its operational excellence and backend strength. However, Scootsy will continue to operate as an independent app. “We, at Scootsy are excited to become a part of India’s largest food ordering and delivery platform,” said Sandeep Das, CEO, Scootsy. "As we continue to evolve with our much-loved user experience, our users will benefit from Swiggy’s operational excellence and deep understanding of the ecosystem."
Laying the Groundwork for Growth
It is but obvious that this acquisition is a step in the right direction for Swiggy to expand its services. According to numerous reports, Swiggy has been looking at extending its services from just food delivery to servicing customers with delivery of groceries and more. With the acquisition of Scootsy, Swiggy will find itself at a better position to enable the same services and more.
Swiggy currently has an existing network of 40,000 restaurants and expects the number to only increase with the acquisition of Scootsy.
What’s interesting to note here is that Swiggy’s acquisitions often take the route of acqui-hire. Swiggy had acquired 48East a startup which delivers gourmet Asian food.
With the acqui-hire option, Swiggy welcomed senior talent from the start-up 48East. Even with this acquisition, the team of Scootsy will continue to work independently.
It is also to be noted here that, consolidation is the way ahead for startups dwelling in the same sector. With Swiggy’s existing prowess in the food delivery sector and Scootsy’s expertise in a range of delivery services, it definitely was a right match for both the start-ups.