Why Swiggy is licensing its food brands to Kouzina
What's the story
Swiggy has formed a strategic partnership with food services platform Kouzina, to license its digital-first food brands, including The Bowl Company, Istah, Soul Rasa, and Homely.
According to an exchange filing, Kouzina will handle operations and growth of these brands.
There are plans for a future ownership transfer of these brands from Swiggy to Kouzina once certain pre-agreed conditions are met.
This move comes as Swiggy plans to redirect its focus on food delivery and its quick-commerce offering Instamart.
Plans
Kouzina to scale the brands faster
Gautam Balijepalli, co-founder and CEO of Kouzina, was optimistic about the partnership in the exchange filing.
He said that under Kouzina's management, they hope to "scale these brands even faster."
Balijepalli also detailed plans to expand into new markets with their asset-light growth model.
Currently, Homely serves select locations in Bengaluru.
Strategy
Why did Swiggy launch the brands?
Swiggy launched its food brands such as The Bowl Company and Homely, to meet the soaring demand for variety and convenience in food delivery.
Arpit Mathur, Vice President at Swiggy, emphasized Kouzina's potential in scaling these brands with its wide digital-first F&B platform and asset-light business model.
This partnership comes at a time when the industry is increasingly leaning toward quick-service food deliveries.
Operational shifts
Swiggy's restructuring amid industry changes
While Swiggy is expanding its food operations, competitor Zomato recently ended its 15-minute food delivery service Quick and homely meal platform Everyday, due to low demand and inconsistent service scenarios.
Separately, Swiggy has also discontinued its Genie pickup and delivery service in many cities due to operational constraints.
The firm had previously restructured its food and beverage operations, by selling its cloud kitchen business to Loyal Hospitality in March 2023 as part of cost-cutting measures.