Swiggy, which has been looking to cut costs in order to become profitable, has sold its kitchen infrastructure business, Swiggy Access, in a share-swap deal to cloud kitchens infrastructure startup Kitchens@.
Swiggy will become a shareholder in Kitchens@ as a result of the transaction, according to an ET report. The company also stated that the acquisition would increase its combined gross merchandise value to approximately $65 million. The news comes a fortnight after it was revealed that Swiggy was attempting to sell Access ahead of its initial public offering (IPO). Swiggy had reduced its kitchen infrastructure business from approximately 200 locations to 30-35 prior to the sale.