By Nishant Sharma
Online food delivery startup Swiggy today said it has acquired on-demand delivery platform Scootsy in an all-cash deal as it looks to strengthen its position in India’s food-tech market where it competes with players such as Zomato.
The acquisition will help the firm boost its delivery service and expand to newer markets, Swiggy said in a statement. The company didn’t share financial details.
People privy to the development, however, told BloombergQuint that Swiggy acquired the Mumbai-based startup for about Rs 50 crore.
Scootsy operates in multicategory such as restaurants, bakeries, gourmet stores and gifting shops. It will continue to operate as an independent app after the acquisition.
Startups that delivers anything from paneer tikka to biryani have bagged close to half a billion dollars in investment this year from some of the world’s biggest internet investors and companies.
Swiggy recently became the second unicorn, or startups valued over $1 billion in the food tech industry, after it raised $210 million in a funding round led by Naspers and DST Global. Zomato received $150 million in February from billionaire Jack Ma’s Ant Financial.
Interest in online food ordering revived last year after Uber Technologies Inc. introduced UberEATS across the country. Same year, domestic rival Ola acquired FoodPanda’s local operations and pledged $200 million to the unit.
Nishant Sharma is the principal correspondent at Bloomberg Quint.