Food ordering and delivery platform Swiggy announced that it has acquired Scootsy, an intracity delivery service provider in an all-cash deal. The value of the transaction was not disclosed.
Swiggy will strengthen Scootsy’s curated restaurant network and help the brand expand to newer cities using Swiggy’s operational strength. Scootsy will continue to operate as an independent app post the acquisition.
Scootsy provides delivery services for restaurants, toys, beauty products and electronics items among others. Sriharsha Majety, chief executive at Swiggy said, “Scootsy is a well-loved brand that enjoys loyalty from both its restaurant partners and the consumer. With a shared belief of providing a superior user experience, its addition will extend the convenience and reliability that Swiggy is synonymous with.”
The company said:
For Swiggy, the acquisition of Mumbai-based Scootsy is in line with its vision to provide a superior consumer experience and the widest restaurant choices for consumers. It will extend the breadth and selection of Swiggy’s existing network of 40,000 restaurants by adding more curated restaurants to it.
Sandeep Das, chief executive at Scootsy, said, “As we continue to evolve with our much-loved user experience, our users will benefit from Swiggy’s operational excellence and deep understanding of the ecosystem.”
The intracity delivery startup was founded in 2015. Last year, it raised $3.6 million from Agnus Capital and Khattar Holdings. The acquisition will enable the company’s expansion across Mumbai and also support its foray into four to five major Indian cities in the coming months.
Swiggy, which started in August 2014, is one of the fastest Indian start-ups to reach a valuation of over $1 billion. In June, Swiggy announced that it has raised $210 million from a group of investors, led by Naspers and billionaire Yuri Milner’s DST Global. The fundraise valued Swiggy at about $1.3 billion.