NEW DELHI: Food delivery platform Swiggy has sold its cloud kitchens business, Access Kitchens, to Bengaluru-based cloud kitchen start-up Kitchens@, in a share swap deal.Kitchens@ CEO Junaiz Kizhakkayil said the acquisition will increase their 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,” added Kizhakkayil. With the sale of Access Kitchens, Swiggy will become a stakeholder in Kitchens@.
The move is part of Swiggy’s efforts to cut costs by scaling down unprofitable verticals as it eyes a public listing. The foodtech major had laid off nearly 400 employees a while ago. Swiggy co-founder and CEO Sriharsha Majety recently in an email to employees had said that the company was taking a harder look at some of its business verticals and shut down its meat marketplace.