Moneycontrol broke the story on August 1.
Online food ordering and delivery firm Swiggy on Thursday announced the acquisition of Mumbai-based on-demand startup Scootsy in an all-cash deal.
Moneycontrol broke the story a day before.
"With this acquisition, Swiggy will 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. Scootsy will continue to operate as an independent app post the acquisition," the company said in a statement.
The companies did not comment on the size of the deal. Moneycontrol reported on August 1 that the deal is valued at USD 8-10 million.
Scootsy was incubated by Ant Farm and was launched in 2015. It last raised USD 3.6 million in a bridge round from investment firm Khattar Holdings and Agnus Capital, the family office of promoters of Stride Group in April 2017.
The company, which primarily runs operations in South Mumbai, had partnered with around 50 brands including names such as Hamley's, Nicobar, The Table, The Bombay Canteen, Bastian and Kitchen Garden.
"The acquisition will enable Scootsy’s expansion across Mumbai as well as propel its foray into 4-5 major Indian cities in the coming months," the statement added.
The deal is learnt to be a distress sale given the sheer cash burn involved in the food delivery segment. Scootsy is expected to have been doing around 1,600 orders on a daily basis. This is against around 3.5-4 lakh orders delivered by Swiggy per day.
The deal happens ahead of Swiggy's next round of funding. The company is in talks with Softbank to raise a new round.Swiggy recently also announced two back-to-back funding rounds. It last raised USD 210 million in a round led by existing investor Naspers and new investor DST Global. This round happened barely three months after it raised USD 100 million from Naspers and Meituan-Dianping.