Swiggy Acquires LYNK For Improved Service and Broadening Customer Base



Swiggy Acquires LYNK For Improved Service and Broadening Customer Base


































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Swiggy, the organization which offers food and grocery delivery on demand of customers has acquired LYNK Logistics Limited. LYNK Logistics Limited is a retail distribution platform. Swiggy has agreed to the acquisition of LYNK. Acquisition of LYNK will help Swiggy in broadening its customer base by entering into India’s grocery retail and food market worth $570 billion.

LYNK has been working with various brands related to Fast Moving Consumer Goods (FMCG). It works as an authorized distributor. It connects the brands with the retail stores. The acquisition of LYNK by Swiggy will enhance the latter’s business portfolio as highly profitable. This deal promises potential synergies with the fast delivery service Instamart.

Karan Taurani, the Senior VP of Elara Capital stated, “Investing in supply chain and technology is a big driver for improving the unit economics in the grocery delivery business which is highly fragmented and there are no signs of any large companies making break-even or profits. It is an emerging business. To drive margins in this business, one needs to ensure higher orders or higher throughput per store which could be a function led by lower lead time. Better packaging and faster processing of the orders would also help drive higher throughput.”

About LYNK

LYNK has made enough profit and claimed to have grown around 2.5 times year on year. This organization is backed by Ramco Industries. Of Ramco Systems and Ramco System, Ramco Industries is one of the holding companies. This firm is counted as among the largest tech-enabled FMCG retail distribution organizations in the nation, it is based in Chennai.

The organization offers timely delivery of products on demand due to its improved on-the-shelf availability and faster order-to-delivery turnaround to retail stores. LYNK Industries is owned and operated by LYNK Logistics Limited.

LYNK has more than 100,000 retail locations spread across India’s top 8 cities. The company helps FMCG businesses expand their retail footprint. LYNK uses its technology platform to support warehouse, inventory management, and logistics activities along the retail distribution value chain.

LYNK was established in 2015 by Abinav Raja and Shekhar Bhende. It will run independently even after the acquisition. The business announced that it will quickly scale its current platform by utilizing Swiggy’s advantages in technology and logistics.





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