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Swiggys Cloud Kitchen may Get Access to .Rs 75 cr more to Expand

Friday, November 22, 2019, 10:14 Hrs  [IST]
HBI Staff | Mumbai

According to the Economic Times, Swiggy plans to invest INR 75 crore in the next six months to expand its cloud kitchen or delivery-only infrastructure business, said a top executive. This will take the company's investment into its cloud kitchen business— Swiggy Access – to INR 250 crore, and comes at a time when the industry is likely to get hyper-competitive. Quite a few companies, including ecommerce behemoth Amazon, Travis Kalanick's City Storage Systems, and Zomato's infrastructure arm are all eyeing a share of the same market. Swiggy's latest planned expansion will be across 14-15 additional small towns and cities including Guwahati, Tirupur, and Surat. 

“There is a fundamental mindset shift which is coming through (in restaurants) on the back of cloud kitchens (as) it is easier to expand,” said Vishal Bhatia, CEO, New Supply, Swiggy. “The plan for Swiggy Access is to facilitate leasing, construction and marketing. A bulk of the investment goes into setting up the facility,” he said. Each facility operates 5 kitchens on average. Based on a revenue-sharing model per delivery, Swiggy Access runs 1,000 kitchens across 14 cities. This business contributes about 3-4% of overall order volume or 1.5 million orders monthly. “However, in the neighbourhood that Swiggy Access operates, we meet between 15-20% of order volume,” said Bhatia. Swiggy claims to have created 8,000 jobs through Access and is planning to add 7,000 more in the next six months. Zomato runs 650 kitchens across more than 50 cities, the firm said 

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