Lynk, founded in 2015, is based in Chennai. The firm works with FMCG brands as an authorised distributor to retail stores. Post-acquisition, Lynk will continue to operate as an independent business led by co-founder and CEO Shekhar Bhende.
In a statement, Swiggy said the buyout would help it enter India’s food and grocery retail market. Lynk claims to have a network of over 100,000 retail stores across 8 cities, and says it uses a “proprietary, integrated technology platform to power the entire retail distribution value chain”.
Lynk has raised about $23 million to date, with its last funding being a Series A round in 2019, according to data from Tracxn. The company’s backers include Ramco Group, which owns about 46% of the firm, and Starbridge Venture Capital. The firm posted revenues of Rs 210.5 crore in the fiscal year ended March 2022, with the loss from continuing operations at Rs 36 crore.
“Lynk is uniquely positioned in the retail distribution space with their brand-first, tech-led operating model and has demonstrated success with multiple FMCG brands. Our experience in supply chain and logistics gives Swiggy the unique opportunity to help Lynk scale up their offerings and empower retailers to serve their customers better, ” Sriharsha Majety, CEO, Swiggy, said in a statement.
Swiggy already has a finger in the grocery-delivery pie through its quick commerce vertical Instamart. The vertical, however, has also been a cash-burn concern, with investor Prosus citing investments in Instamart when talking of the $180 million in losses it incurred from its Swiggy investment between January and December 2022. In May, Swiggy claimed that its core food-delivery business had turned profitable, excluding ESOP costs, as of March 2023.
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