Online food delivery platform Swiggy has prepared to launch its IPO. It has submitted draft papers to SEBI to present a public offering of about one and a quarter billion dollars (Rs 10,414 crore), marking one of the largest IPOs for a new-age internet firm. Now, as per a media report, Amazon India has approached Swiggy for a potential deal involving its quick commerce business, Instamart.
Sources related to this business transaction reveal that there can be two ways for Amazon and Swiggy to join hands. Amazon is eyeing to buy a stake in the upcoming IPO or to buy shares in Instamart. However, it is also being said that both ways will not be an easy ride for Amazon. No official statement has been issued by the company yet.
It is believed that Swiggy wants to sell only its quick commerce business, while Amazon does not seem interested in buying the company’s food delivery business. As per the report of the Economic Times, acquiring Swiggy would be a difficult task for Amazon as the former is valued at 10-12 billion dollars (Around Rs 1 lakh crore). On the other hand, Amazon is not reportedly interested in buying minimal shares of Swiggy. Currently, Swiggy competes with Zomato, whose market value is double i.e. Rs 1.9 lakh crore.
Both Swiggy and Zomato have not yet separately evaluated their quick commerce verticals. Goldman Sachs recently said that the valuation of Zomato’s quick commerce unit Blinkit is around $13 billion (about Rs 1.06 lakh crore). However, Swiggy’s valuation is not yet known.
What is Quick Commerce Business?
Quick commerce has brought new competition in the market for e-commerce companies. Companies are now focusing on faster delivery. In this series, Swiggy launched Instamart while Zomato launched Blinkit in the market to become a part of the quick commerce business. Whereas, a Mumbai-based start-up, Zepto is competing with both of them in this business. Flipkart is also eyeing to expand its business and for this, the company has received a billion-dollar (approx Rs 8,300 crore) fund from its parent company Walmart. The company is going to launch its new business in the name of Flipkart Minutes.
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