Swiggy ends private label play, gives licensing rights to Kouzina

This comes a day after Moneycontrol reported that Swiggy shut down its hyperlocal delivery service Genie

Food and grocery delivery major Swiggy has entered into a strategic agreement with food service platform Kouzina for the exclusive license of its digital-first food brands: The Bowl Company (TBC), Homely, Soul Rasa, and Istah, the company informed exchanges on May 6. The move marks Swiggy’s formal exit from its private label business.

While the deal terms were unclear for now, if the licensing agreement works out between the two parties over a longer term, Kauzina may look at a potential acquisition of the brands from Swiggy as well, Moneycontrol has learnt.

Under this agreement, Kouzina will manage end-to-end operations, innovation, and growth for these brands. Upon fulfillment of certain pre-agreed conditions, which are yet to be disclosed, Swiggy will transfer full ownership of these brands to Kouzina, the company said.

This comes a day after Moneycontrol reported that Swiggy shut down its hyperlocal delivery service Genie, as the company looked to focus on core offerings such as food delivery and up the ante on Instamart, its quick commerce offering, to compete more closely with Blinkit, Zepto and the others.

“Swiggy’s food brands-including The Bowl Company, Homely, and others were launched to address gaps in restaurant supply and meet the demand for variety and convenience in food delivery,” said Arpit Mathur, VP at Swiggy.

“These brands have filled key market whitespaces and inspired restaurant partners to innovate, ultimately benefiting consumers. With its expansive digital-first F&B platform and asset-light business model, Kouzina is well-positioned to scale these brands to new heights,” he added.

Launched by Swiggy in 2017, The Bowl Company was Swiggy’s largest private label, offering a broad menu with signature dishes such as Peri Peri Chicken Rice Bowl, Nawabi Paneer Lababdar Rice Bowl, Drunken Chicken Rice Bowl, and Dhaba Style Dal Tadka Rice Bowl.

However, over the years, the type and nature of restaurants have evolved, which has reduced the need for services like TBC.

“The Bowl Company is a gold standard in digital-first F&B brands, having cracked the code on affordability, consistency, and consumer love. Homely, Istah, and Soul Rasa have also seen fantastic customer loyalty over the years,” said Gautam Balijepalli, co-founder and CEO of Kouzina.

In the lead up to the deal, Swiggy’s private labels were unavailable in cities like Bengaluru and Delhi-NCR. While Homely is currently live in select Bangalore locations, The Bowl Company will be launching later this week.

Kouzina is preparing to expand the brands to more cities soon, Balijepalli added. Kouzina currently operates over 250 kitchen partners across over 100 cities.

This comes at a time when food delivery players are increasing focus on their core businesses like food delivery and quick commerce. While Swiggy shuttered Genie, Zomato also recently discontinued its 15-minute food delivery services Quick and Everyday, citing operational challenges.