Swiggy To Transfer Ownership Of Digital-First Food Brands To Kouzina

Foodtech major Swiggy has entered into a strategic agreement with Bengaluru-based Kouzina Food Tech to snap up exclusive licences for its digital-first food brands, including The Bowl Company (TBC), Homely, Soul Rasa, and Istah.

Under this deal, Kouzina will manage all aspects of these brands, including operations, innovation, and nationwide expansion through its asset-light, cloud kitchen model.

However, some of these brands have reportedly been grappling with operational challenges.  

A source told Inc42 that TBC has been down for five weeks now in Bengaluru. 

Internally, Swiggy had temporarily delisted the brand due to operational issues, the source added.

Inc42 had previously reached out to Swiggy with queries around the delisting of The Bowl Company but failed to elicit any official response.

Although the financial terms of the deal were not disclosed, but after meeting certain pre-agreed conditions Swiggy will transfer full ownership of these brands to Kouzina.

While Homely is already operational in select Bengaluru locations, TBC will be launched later this week, Kouzina CEO and cofounder Gautam Balijepalli noted.

“We’re also preparing to expand to more cities soon,” Balijepalli said. 

Launched by Swiggy in 2017, TBC is its largest in-house food brand, known for its diverse menu. Homely, Soul Rasa, and Istah are other cloud kitchen brands that were also operated under Swiggy.

However, as the restaurant landscape evolved, the demand for a brand like TBC appears to have declined.

Swiggy had initially introduced these brands to address gaps in restaurant supply and enhance consumer convenience and variety.

“Swiggy’s food brands-including The Bowl Company, Homely, and others were launched to address gaps in restaurant supply and meet the demand for variety and convenience in food delivery. These brands have filled key market whitespaces and inspired restaurant partners to innovate, ultimately benefiting consumers,” said Swiggy’s vice president Arpit Mathur.

With this move, Swiggy seems to be exiting the private label business by licensing these brands to Kouzina.

This development comes as the company faces heat from the restaurant industry over its private label strategy, with the National Restaurant Association of India (NRAI) set to take legal action against both Swiggy and Zomato.

Swiggy Doubles Down on Bolt Expansion

Recently, Swiggy also shut down its hyperlocal delivery service Genie, marking a strategic shift away from operating its own food brands to focusing on core delivery and quick commerce. 

Just last Friday, the company disclosed in an exchange filing that it is doubling down on its quick food delivery initiative, Bolt, which is now being expanded to more than 500 cities across India. 

The company also claimed that in less than 6 months of being launched, Bolt already powers more than 1 in every 10 Food delivery orders delivered by Swiggy.  

Meanwhile, its rival Zomato recently shut down its quick food delivery vertical, Zomato Everyday, along with its broader quick commerce play, Zomato Quick.

Although Swiggy’s Q4 results are yet to be disclosed, the company posted a weak financial performance in Q3 FY25. Its net loss widened to INR 799 Cr in Q3 FY25, up 39% from INR 574 Cr in the same period last year. 

Despite a 31% increase in revenue to INR 3,993 Cr, the company’s adjusted EBITDA loss stood at INR 490 Cr.

Meanwhile, Kouzina claims to operate in more than 250 kitchen partners across over 100 cities. Its brand portfolio spans the full spectrum of food occasions from mass market meals and thalis to premium bowls, global cuisines, regional favourites, and indulgent offerings. 

The company has been on an aggressive expansion spree, recently acquiring the iconic South Indian brand Vasudev Adiga’s and investing in Shark Tank-famed MOPP Foods.

Shares of Swiggy were trading  0.2% lower at INR 343.05 at 2 PM on the BSE.