Ramco Industries Ltd. and Ramco Cements Limited have decided to sell their entire stake in LYNK Logistics Ltd. to Bundl Technologies, which owns Swiggy, the online food delivery platform.
As per separate regulatory filings made by these two Ramco companies on July 13, Ramco Industries held a total of 46,15,83,065 equity shares in LYNK Logistics while Ramco Cements has a total shareholding of 49,95,16,202, prior to the sales.
The transaction will be carried out through the swapping of shares/sale of shares held in LYNK Logistics and the acquisition of compulsorily convertible preference shares of Bundl Technologies, as per the filings. However, there was no financial details were available.
Swiggy on July 12 said it entered into a definitive agreement to acquire LYNK Logistics Limited and post-acquisition LYNK would continue to operate as an independent business led by Co-founder and CEO, Shekhar Bhende.
With this acquisition, Swiggy would plunge into the food and grocery retail market, the world’s one of largest and fastest-growing space, currently estimated to be $ 570 billion in size, and expected to grow at 8% year-on-year, the platform said in a statement.
“Our experience in supply chain and logistics gives Swiggy the unique opportunity to help LYNK scale up their offerings and empower retailers to serve their customers better,” said Sriharsha Majety, CEO, Swiggy.
Bhende, Co-founder, LYNK said, “Given our rapid growth, we believe we are uniquely placed to lead the digitisation of retail distribution in the country.”
Post-acquisition, LYNK would leverage Swiggy’s strength in technology and logistics to rapidly scale its existing platform.
Founded in 2015 by Abinav Raja and Shekhar Bhende LYNK supported FMCG brands to grow their retail presence through its network of over 1,00,000 retail stores across 8 top cities of India, the release said.
Ramco Industries, Ramco Cements sell their holding in LYNK Logistics to Swiggy - The Hindu
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