In a major shift in its business strategy, Indian food and grocery delivery giant Swiggy has announced its official exit from the private label space. The company has entered into an exclusive licensing agreement with food service platform Kouzina for the management and potential acquisition of its digital-first food brands — The Bowl Company (TBC), Homely, Soul Rasa, and Istah. This significant update was shared by Swiggy in a formal communication to exchanges on May 6.
This move is Swiggy’s strategy to intensify its focus on its core business offerings, namely food ordering and its growing quick-commerce category, Instamart. Instamart is in direct competition with retailers like BigBasket’s BB Now, Zepto, and Blinkit As Swiggy steps away from directly owning and operating its own food brands and towards a model where a specialist such as Kouzina comes to the forefront, the deal with Kouzina reflects both a strategic shift and an operational outsourcing.
What the Agreement Means?
Under the terms of the new arrangement, Kouzina will gain exclusive licensing rights to operate, innovate, and scale the four digital-first food brands that were developed and nurtured by Swiggy over the years. These brands include:
- The Bowl Company – Known for its diverse rice bowl offerings
- Homely – Focused on affordable, home-style Indian meals
- Soul Rasa – A premium Indian fusion brand
- Istah – Specializing in Mediterranean-style cuisine
Kouzina, which has built a reputation for running asset-light cloud kitchens and a tech-driven, scalable model, will be responsible for managing all aspects of these brands — from menu innovation and kitchen operations to customer experience and expansion.
While the specific commercial terms of the deal remain undisclosed, it has been reported that if the licensing arrangement proves successful in the long term, Kouzina may move forward with a full acquisition of these brands from Swiggy. The agreement also includes a set of pre-defined conditions, which, upon fulfillment, will lead to the complete transfer of ownership from Swiggy to Kouzina.
The Context Behind Swiggy’s Exit From Private Labels
Due to operational inefficiencies and a lack of scalability, Swiggy chose to suspend its hyperlocal delivery service, Genie, just one day prior to this development. Although Genie made it possible for customers to transfer goods within the city, it had trouble gaining the kind of widespread use and unit economics required to maintain long-term operations. Swiggy’s decision to restructure its operations and concentrate entirely on its core competencies—food delivery and fast grocery services—is shown by the company’s exit from both Genie and its private label division.
The introduction of private food businesses like The Bowl Company and Homely was meant to close important holes in the meal delivery ecosystem, according to Arpit Mathur, vice president at Swiggy. According to him, “these brands were created to satisfy consumer demand for greater consistency and variety, particularly in categories that were underserved by traditional restaurants.” According to Mathur, the launch of these labels was a major factor in motivating restaurant partners to improve their own products.
However, as the food service landscape matured and became more diversified — particularly in metro areas — the need for Swiggy to operate its own food brands began to diminish. A broader variety of third-party restaurants started meeting the demand that Swiggy’s private labels once filled.
A Natural Fit: Kouzina’s Strengths
In light of this changing market, Swiggy found a suitable partner in Kouzina, a company that has already demonstrated success in scaling food brands using a digital-first, asset-light approach. Kouzina currently operates more than 250 kitchen partners across 100+ cities in India, giving it the reach and infrastructure necessary to grow Swiggy’s brands across multiple regions.
The Bowl Company is “a gold standard in digital-first F&B brands,” according to Gautam Balijepalli, co-founder and CEO of Kouzina, who also noted the company’s achievement in preserving price, consistency, and high customer loyalty. He went on to say that other Swiggy brands, such as Istah, Homely, and Soul Rasa, have also developed a devoted following over time.
Kouzina plans to relaunch and scale these brands in a phased manner. While Homely is already operational in some parts of Bangalore, The Bowl Company is scheduled to be relaunched later this week. Balijepalli confirmed that expansion into new cities is on the roadmap, which will further enhance the visibility and availability of these offerings under Kouzina’s management.
Why This Move Matters For The Industry
A larger trend in India’s food delivery industry is shown by Swiggy’s decision to stop running proprietary brands. Businesses are concentrating on enhancing their core sectors and maximizing revenue as competition heats up. Although food brand ownership and management can be very profitable, there are drawbacks, such as high operating expenses, supply chain dependencies, and difficulties with quality control.
By handing over these responsibilities to Kouzina, Swiggy not only frees up internal resources but also ensures that the brands it built over the years continue to thrive under capable leadership. At the same time, Kouzina benefits from acquiring well-established brand equity, menu IP, and customer loyalty — all of which can be rapidly scaled using its existing kitchen network.
This kind of strategic outsourcing with a potential acquisition path is a smart way to preserve brand value while minimizing risk — a win-win situation for both players involved.
A Trend Across Competitors
Swiggy is not alone in reevaluating non-core business units. Its nearest competitor, Zomato, recently discontinued its 15-minute food delivery services, “Zomato Quick” and “Everyday,” claiming low customer retention and operational challenges. These changes imply that even the largest companies in the market are starting to choose their verticals more carefully and based on data.
With quick commerce becoming the new battleground — thanks to the rise of Blinkit, Zepto, and Instamart — companies like Swiggy and Zomato are likely to pour more capital and innovation into instant grocery delivery, while offloading or optimizing underperforming segments.
What’s Next?
As Swiggy sharpens its focus, its collaboration with Kouzina will be closely watched by industry analysts. If successful, this model may serve as a blueprint for other food tech firms looking to spin off or outsource in-house brands while retaining some form of long-term upside.
For customers, the transition is expected to be seamless, with continued access to popular dishes like the Peri Peri Chicken Bowl, Dhaba Style Dal Tadka, and Nawabi Paneer Lababdar — only this time, prepared and managed under Kouzina’s expanding kitchen network.
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Frequently Asked Questions
1. What recent announcements has Swiggy made?
The Bowl Company, Homely, Soul Rasa, and Istah are Swiggy’s four digital-first food brands. Swiggy has formally withdrawn its private label food division and signed a strategic partnership with food service platform Kouzina to license these brands.
2. How does this agreement benefit Kouzina?
The sole right to run, develop, and grow these food brands is granted to Kouzina. Kouzina may eventually acquire complete control of the brands, subject to specific requirements.
3. What is causing Swiggy to leave the private label food market?
Swiggy is putting more of an emphasis on its core services, which include fast shopping through Instamart and meal delivery. The need for in-house food brands decreased as restaurant supply and diversity grew, which made Swiggy’s private label business less strategic.
4. Will consumers still be able to purchase these brands?
The Bowl Company and Homely, which are currently run by Kouzina, will indeed be available. In fact, Kouzina intends to use its vast kitchen network to expand these brands to further cities.
5. Has Swiggy recently discontinued any other services?
Yes, in order to concentrate on high-growth sectors like food delivery and Instamart, Swiggy recently shut down its hyperlocal delivery service Genie.
