Amazon India approaches Swiggy for a Possible Fast Commerce Business: Reports

Amazon India has approached IPO-bound Swiggy for a possible agreement involving its fast commerce business, Instamart. The e-commerce is observing a stake in the ongoing pre-IPO placement or a buyout suggestion for Instamart.

According to sources, Swiggy would not be interested in selling only its fast commerce business and Amazon would not be interested in the food delivery business where development is gradually starting to plateau. 

This comes at a time of Swiggy confidentially filing draft documents with SEBI for Rs 10,414 crore public offering. 

While other sources stating that buying the entire company would be too expensive at $10-12 billion, and Amazon does not usually pick up minority stakes. 

Amazon’s interest in Swiggy Instamart comes as the e-commerce is trying to work on its own fast commerce initiative for months. However, they will need global clearance for it and a separate vertical, considering it does not offer the service in any of its markets globally. 

Swiggy is looking to decrease the shareholding of one of its oldest backers, Prosus, that owns a 33 per cent stake and is in the procedure of cutting its ownership to less than 26 per cent, ahead of the IPO.