New Delhi: The on-demand convenience platform, Swiggy, has announced its acquisition of Lynks Logistics Ltd (LYNK), an FMCG retail distribution firm, through a share swap deal. This move allows Swiggy to enter India’s food and grocery retail market by utilizing Lynks’ technology-driven distribution platform.
Ramco Cements Ltd, along with Ramco Industries, have agreed to sell their equity shares in Lynks Logistics Ltd to Bundl Technologies Pvt Ltd, the parent company of Swiggy. As part of the transaction, Ramco Cements will sell over 49.95 crore equity shares, while Ramco Industries will transfer their entire shareholding of over 46.15 crore equity shares to Bundl Technologies.
In exchange for these shares, Ramco Cements will receive 24,18,915 compulsory convertible preference shares of Bundl Technologies, and Ramco Industries will receive 22,35,223 compulsorily convertible preference shares.
Swiggy plans to maintain Lynks Logistics as an independent business, led by its co-founder and CEO, Shekhar Bhende. The acquisition allows Swiggy to tap into India’s food and grocery retail market, estimated to be over USD 570 billion and experiencing a growth rate of 8% annually.
Swiggy CEO Sriharsha Majety expressed excitement about Lynks’ brand-first, tech-led operating model and its success with various FMCG brands. Swiggy’s expertise in supply chain and logistics will enable Lynks to expand its offerings and support retailers in enhancing customer service.
Lynks Logistics currently operates a network of over 1 lakh stores across the top eight cities in India. Leveraging Swiggy’s technological capabilities and logistics infrastructure, Lynks aims to accelerate its growth and scale its existing platform rapidly.
With this strategic acquisition, Swiggy aims to establish a strong presence in India’s booming food and grocery retail market and capitalize on the tremendous growth opportunities it offers.