Food delivery giant Swiggy has made a significant strategic decision by transitioning out of its private label sector. The company has transferred exclusive licensing rights for its digital-first food brands to Kouzina, a well-known food services entity. This bold move underscores Swiggy’s commitment to enhancing its focus on rapid commerce and innovative food delivery solutions.
A Shift in Focus for Swiggy
The food brands involved in this transition include The Bowl Company (TBC), Homely, Soul Rasa, and Istah. Launched in 2017, TBC quickly emerged as a standout, known for its high-quality, single-serve meals designed for everyday dining. Its menu features enticing options such as:
- Peri Peri Chicken Rice Bowl
- Nawabi Paneer Lababdar Rice Bowl
- Drunken Chicken Rice Bowl
- Dhaba Style Dal Tadka Rice Bowl
These offerings have resonated particularly with students and professionals seeking convenient meal solutions.
Bridging Market Gaps
Arpit Mathur, Swiggy’s vice president, remarked that these brands were created to fill vital gaps in the food delivery landscape, enhancing variety and convenience for consumers. “These brands have targeted essential market needs and inspired our restaurant partners to innovate, ultimately benefiting the end-user,” he noted.
With this new arrangement, Kouzina will take over all operational aspects, including innovation and growth strategies for these brands. Complete ownership will be finalized upon satisfying specific conditions outlined in their agreement. Gautam Balijepalli, co-founder and CEO of Kouzina, expressed optimism about scaling these brands using an asset-light expansion model. He mentioned that Homely is already operational in select areas of Bengaluru, and The Bowl Company is set for a relaunch within the week, with future expansion plans to other cities.
Kouzina’s Expanding Portfolio
Kouzina primarily operates via a franchise model utilizing cloud kitchens and has been rapidly growing its brand offerings. Recently, the company acquired the South Indian restaurant brand Vasudev Adiga’s and made an investment in MOPP Foods, a startup that gained attention on Shark Tank.
For Swiggy, this strategic handover aligns with its goal to streamline operations and concentrate on high-growth segments. The company recently concluded its Genie hyperlocal delivery service due to disappointing revenue outcomes. Launched in 2020, Genie operated in approximately 60 cities, allowing users to send and collect parcels within urban areas.
Continued Growth in Quick Delivery
Meanwhile, Swiggy’s rapid food delivery service, Bolt, is experiencing growing popularity. Currently available in over 500 cities, Bolt accounts for 10% of Swiggy’s overall food order volume, highlighting the company’s ongoing evolution in the competitive food delivery market.
This strategic pivot not only showcases Swiggy’s adaptability but also its determination to enhance customer satisfaction and operational efficiency in a rapidly changing industry.
