Online food delivery platform Swiggy sold its cloud kitchens business, Access Kitchens, to cloud kitchen startup Kitchens@, in a share swap deal.
The move is part of Swiggy's attempts to rationalise costs even as it eyes public listing. The company had laid off nearly 400 employees two months ago and has been trying to do away with its nonviable business vertices.
Launched in 2017, Access Kitchens allowed the restaurant partners of Swiggy to set up cloud kitchens in places they did not have an outlet to increase the reach of their partners and to help Swiggy reach more consumers.
Kitchens@ CEO Junaiz Kizhakkayil, in a press release, said the acquisition will help the company to increase its reach in 52 locations in four cities. "The addition of Swiggy's Access kitchens will bolster the reach and operations of Kitchens@ in four cities across 52 locations and 700+ kitchens, providing customers with more convenient and efficient food delivery options," he said.
“Our goal has always been to make fresh food accessible by powering a super-efficient food delivery ecosystem," Kizhakkayil said.
With the sale of Access Kitchens, Swiggy will become a stakeholder in Kitchens@.