Food delivery startup Swiggy has acquired Lynk Logistics, a company operated by Ramco Cements Limited and other promoters of the Ramco group of companies, in a share swap deal, regulatory filings showed.
The filings also showed that Chennai-based Ramco Cements will now become a shareholder in Swiggy, which is preparing for an Initial Public Offering. Ramco Cements will be selling 49,95,16,202 shares in Lynk Logistics to Bundl Technologies, the company that operates Swiggy, and will get 24,18,915 Compulsory Convertible Preference Shares (CCPS) of Bundl Technologies in return.
Now that Swiggy will be acquiring the logistics and truck aggregator company, the startup will look to strengthen its hold in India’s fast-growing food and grocery retail market, which is estimated to be over $570 billion in size and will likely grow at 8 percent year-on-year (YoY), according to a company statement.
The deal size was not immediately known.
Lynk works with several fast moving consumer goods (FMCG) companies and helps them grow their retail presence in the top eight cities of India by tapping into the company’s network of over 1,00,000 retail stores.
“I am excited to have the Lynk team join Swiggy. Lynk is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands,” Sriharsha Majety, CEO, Swiggy, said in a media statement.
Lynk, the company founded in 2015, will still be led by co-founder and CEO, Shekhar Bhende and will continue to operate as an independent business even after the acquisition, which is slate to be completed by August 14, 2023.
“...we believe we are uniquely placed to lead the digitization of retail distribution in India. With Swiggy, we now hope to further accelerate our growth and double down on the tremendous opportunity before us. We are deeply encouraged by our interactions with Swiggy,” Shekhar Bhende, co-founder, Lynk, concluded.
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