3 August, 2018
Mumbai-based on demand delivery firm Scootsy has been acquired by food delivery firm Swiggy in what is being seen as a distress sale.
The all cash deal is valued at about Rs 50 crore (under $8 million) and is likely to see Scootsy’s brand name being retained in Mumbai, according to multiple people aware of the development.
Scootsy’s founding team will be retained and continue to helm its operations under the Scootsy brand name, post the deal with Swiggy.
Founded in 2015 as an on-demand delivery platform in Mumbai, Scootsy has raised about Rs 25 crore so far from Agnus Capital and Khattar Holdings.
While the firm aggregates premium dining options catering to a niche, premium, high ticket size food delivery play in the city, about 25-30% of its business comes from non-food hyperlocal delivery operations including daily essentials, flower and gifting.
Heavy capital flow in the food delivery segment amongst the top national players rendered Scootsy helpless in its attempts to raise capital over the past year.
A large part of the cash component of the deal will be used to pay salaries of Scootsy’s employees who haven’t been paid for over 3 months, according to one of the persons cited above.
Swiggy confirmed the acquisition and added that the deal will enable Scootsy’s expansion across Mumbai as also help propel it into 4-5 more cities. Scootsy currently has a strong hold in South Mumbai, Lower Parel and some parts of Bandra where several premium dining restaurants are located.
“With a shared belief of providing a superior user experience, its (Scootsy’s) addition will extend the convenience and reliability that Swiggy is synonymous with,” said Sriharsha Majety, CEO, Swiggy in a statement. The deal will add heft to Swiggy’s 40,000 strong restaurant network across India.
Scootsy currently delivers under 2000 orders per day and has under 700 delivery agents in Mumbai across its food and non-food delivery operations.
Swiggy delivers about 5,00,000 orders per day and has a fleet size of 55,000 all over the country.