Mumbai-based on-demand delivery startup Scootsy got acquired by food ordering and delivery firm Swiggy for a valuation of INR 50 crore (under $8 million) in an all cash deal. According to multiple sources, Scootsy's founding team will continue to wheel its operations under the brand name Scootsy in Mumbai post the deal also. In December, Swiggy also acquired 48East, a Bengaluru-based Asian food ordering startup.
Founded in 2015 by Rishi Khiani and Sandeep Das, Scootsy operated as an on-demand delivery platform in Mumbai. It raised about INR 25 crore in a bridge round from investment firm Khattar Holdings and Agnus Capital. It primarily runs operations in South Mumbai and has partnered with around 50 brands, namely Hamley's, Nicobar, The Table, The Bombay Canteen, Bastian and Kitchen Garden.
Scootsy delivers almost 2,000 orders each day aided by some 700 delivery agents across its food and non-food delivery operations in south Mumbai, Lower Parel and some parts of Bandra. Scootsy synthesis finest and 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.
Intense capital flow in the food delivery segment amid the top national players rendered Scootsy helpless in its attempts to raise capital over the past year. After this acquisition Scootsy’s CEO Sandeep Das said, "As we continue to evolve with our much-loved user experience, our users will benefit from Swiggy's operational excellence and deep understanding of the ecosystem”. A large part of the cash of the deal will be used to pay salaries of Scootsy’s employees who haven’t been paid for over 3 months.
Founded in 2014, Swiggy is India’s largest food delivery platform with about 40,000 restaurant partners spread across 17 cities. Post acquisition Swiggy’s CEO Sriharsha Majety said, "With a shared belief of providing a superior user experience, its addition will extend the convenience and reliability that Swiggy is synonymous with.
"
This acquisition will benefit Swiggy, which is looking to enter the hyperlocal delivery market. Scootsy premium customer base will add value to Swiggy’s current delivery categories, which it is planning to expand as per Scoosty’s other varied listings. It will also up heave Swiggy’s network of 40,000 restaurants. With Swiggy’s developed ecosystem and the right resources for expansion, Scootsy would be able to expand across Mumbai as well as boost its foray into other 4-5 major cities in India.
In past few months, Swiggy has been proactive funding wise. It recently did two back-to-back funding rounds and is again in talks with Japan-based SoftBank for a fresh round of funding. The company last raised $210 million in a round led by existing investor Naspers and new investor DST Global. This round happened barely three months after it raised $100 million from Naspers and Meituan-Dianping.
Swiggy delivers about 5,00,000 orders per day with an average value of INR 350 each. It has a fleet size of 55,000 all over the country. The average order value of Scootsy is over INR 750. This deal will be of great advantage as Swiggy would be able to tap customers from both the midlevel and the premium-level markets. This will give it an edge over rival Zomato when it comes to capturing market share outside their respective home grounds.
