Food ordering and delivery platform Swiggy announced that it has acqui-hired Bangalore-based gourmet Asian food startup 48East, founded by food industry veterans Joseph Cherian and Nabhojit Ghosh.
Founded in August 2016, 48East offers exotic delicacies from 48 different countries across the Asian continent. The startup operates five kitchens, processes 9,000 orders a month and serves over a dozen areas in Bengaluru.
In February 2017, the startup had raised USD 500K in Pre Series A funding from Al Dhaheri Family based in UAE. Prior to that, in August 2016, it had raised 250K USD in a round of angel funding from Agra based ACPL exports.
As part of the deal, both the co-founder Cherian and Ghosh will join Swiggy. The two will now work on Swiggy’s supply business, including Swiggy Access, which lets restaurant partners expand into newer areas of the city for delivery by using Swiggy’s in-house kitchen space. Over the next six months, Swiggy plans to introduce 40 restaurant partners to newer neighbourhoods across the country through Swiggy Access.
Talking about the acqui-hires, Sriharsha Majety, CEO, Swiggy said, “With their deep understanding of the food space and an impressive track record of delivering a great consumer experience, the 48East team will equip Swiggy with additional capabilities. We are excited to work with them towards our vision of changing the way India eats.”
Founded in 2015, Bangalore-based Swiggy has raised close to USD 156 million from investors such as Accel, Innoven and SAIF Partners. With operations in eight cities along with 20,000 active restaurant partners, Swiggy’s delivery fleet of 20,000 people handle four million orders a month.
Swiggy’s revenue jumped 6 times to Rs 133 crore in FY17 from Rs 20 crore in 2016. However, the company’s expenses also rose to Rs 345 crore along with the loss of around Rs 205 crore, an almost 50 percent.
Last month, Swiggy expanded its operations to Ahmedabad. It already operates in Mumbai, Delhi-NCR, Bengaluru, Chennai, Pune, Hyderabad and Kolkata.
For Swiggy, this is the first acquisition and also there is speculation that it might acquire FreshMenu.