Swiggy, an online food ordering and a delivery platform has acquired a Mumbai based on-demand delivery platform Scootsy. The deal has been cracked for Rs. 50 crore. With this purchase, Swiggy will bolster the Scootsy’s curated restaurant network and will also strengthe the brand to expand it in to new cities on the back of its operational excellence and its backend strength, the company said in a statement.
Scootsy, was founded in the year 2015, and is a mobile appllication based intra-city delivery service in Mumbai which delivers the items across different fashion items, gift stores, curated craft items, food items, bakery items etc.
It also does a late night delivery in case of emergency needs up to 3 in the morning. The items delivered late night include OTC medicines, mosquito repellents, Maggi, shaving cream, diapers, sanitary pads etc within an hour of placing the order.
“Scootsy 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,” said Sriharsha Majety, CEO, Swiggy.
“We are excited to become a part of India’s largest food ordering and delivery platform,” said Sandeep Das, CEO, Scootsy, adding that its users will benefit from Swiggy’s operational excellence and deep understanding of the ecosystem.
Scootsy was incubated by the Ant Farm, and was launched in 2015. In the year 2017, the company raised funding of $3.6 million from Agnus Capital, and a Singapore-based investment firm Khattar Holdings. According to media reports, Scootsy was going through a capital crunch owing to extensive cash burn involved in hyperlocal delivery business and did not pay salaries to its employees for three months. As a result, the number of riders reduced and impacted the deliveries.
Swiggy is looking at diversifying its business with the hyperlocal delivery segment. In April it had launched a new service will be called ‘Dash’ for piloting in this segment. At that time, Swiggy’s spokesperson neither denied nor shared any details on this development and had said that “at Swiggy, we’re continuously experimenting with ways in which we can enrich the lives of our consumers and partners by making it more convenient and hassle-free”.
When in February this year, Swiggy raised Series F funding of US $100 million, it had said that it will use the capital to strengthen its technology and introduce new products and services. Founded in 2014, Swiggy has about 35,000 restaurant partners spread across 17 cities. Swiggy currently does 14 million orders per month as on June 2018, according to MediaNama sources.
Zomato, which has its food order and delivery services in 21 cities in India, launched its online ordering and food delivery services in May 2015, and currently does about 10.5 Million orders a month. Zomato recently said at the time of Football World Cup, it touched an order run rate of 13 million orders in the month.