Swiggy has entered the race to acquire India operations of German wholesale retail company Metro AG, according to a report by The Economic Times.
The food and grocey delivery platform is contending with Thailand's CP Group and Reliance Retail in the bid to buy Metro AG's India operations.
“Swiggy has evinced interest in the acquisition, and a potential deal will enable Metro Cash & Carry's wholesale stores to feed Swiggy’s Instamart delivery model. The idea is to create a hub-and-spoke model where Metro stores will supply to Instamart stores, which could be delivery-only or even stores where consumer can walk in," the publication quoted one of the executives as saying.
Swiggy's move to make the deal is seen as an attempt to expand its business beyond food delivery.
“Metro’s network of stores and deep links with FMCG players will give Swiggy significant sourcing muscle and an edge over rivals,” the report quoted a source as saying.