Cloud Kitchen Firm Kitchens@ Acquires Swiggy's Cloud Kitchen Division
Kitchens@, a cloud kitchen company, announced the acquisition of Swiggy's cloud kitchen unit Access Kitchen in exchange for shares. Swiggy will become a shareholder in Kitchens@ as a result of the acquisition.
Kitchens@ stated that its combined gross merchandise value would be around $65 million following the acquisition, with plans to increase that to $100 million.
Swiggy Access kitchens enabled restaurants, both online and offline, to open kitchen spaces in areas where they did not currently operate in order to ensure faster delivery.
"The addition of Swiggy's Access kitchens will bolster Kitchens@'s reach and operations in four cities across 52 locations and 700+ kitchens, providing customers with more convenient and efficient food delivery options," said Junaiz Kizhakkayil, Kitchens@'s chief executive officer.
Swiggy's cost-cutting efforts have led to this development. On January 20, the company announced layoffs and the closure of its meat business as its core food delivery business slowed, in addition to the adverse macroeconomic headwinds affecting tech companies as a whole.
“Swiggy Access was started with the aim to bridge hyperlocal gaps in restaurant supply and solve for variety, quality, and convenience of food. Since its inception, Access has enabled several restaurant partners to innovate and expand their reach to new customers in a cost-effective manner. We are confident that Kitchens@ is fully equipped to nurture this ecosystem by innovating and building more supply. Swiggy continues to believe in the potential of this space and remains invested as a stakeholder in Kitchens@,” said Rahul Bothra, chief financial officer of Swiggy.