Swiggy sells its cloud kitchen business amid broader cost cutting ...
17 October 2024
Two months after laying off 380 employees in a bid to rationalise costs in a tough venture funding market, food delivery major Swiggy has now sold off its cloud kitchens business in a share swap deal with Kitchens@.
In an email to employees in January, Swiggy co-founder and CEO Sriharsha Majety said that the company was taking a harder look at some of its business verticals and shut down its meat marketplace.
“The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally ). This meant that we needed to revisit our overall indirect costs to hit our profitability goals..,” he wrote in the e-mail.
Two months after laying off 380 employees in a bid to rationalise costs in a tough venture funding market, food delivery major Swiggy has now sold off its cloud kitchens business in a share swap deal with Kitchens@. In an email to employees in January, Swiggy co-founder and CEO Sriharsha Majety said that the company was taking a harder look at some of its business verticals and shut down its meat marketplace. “The growth rate for food delivery has slowed down versus our projections (along with many peer companies globally ). This meant that we needed to revisit our overall indirect costs to hit our profitability goals..,” he wrote in the e-mail.
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