Amazon Eyes Stake In IPO-Bound Swiggy’s Instamart Business Amid Quick Commerce Boom

Ecommerce giant Amazon India has reportedly approached foodtech major Swiggy for a potential deal involving its quick commerce business Instamart.

The latest development comes at a time when Swiggy is gearing up for its public listing. The foodtech giant filed its draft red herring prospectus (DRHP) confidentially with the Securities and Exchange Board of India (SEBI) in April. Swiggy aims to raise over INR 10,000 Cr through the IPO, which will likely include a fresh issue of shares worth INR 3,750.1 Cr and an offer for sale (OFS) component of up to INR 6,664 Cr.

“Amazon has swooped in with interest to either pick up a stake in the ongoing pre-IPO placement or a buyout proposal for Instamart… but there are multiple roadblocks at the moment,” a source told ET.

Amazon has responded to Inc42’s query, saying that the company doesn’t comment on rumours and speculations. However, Swiggy’s response is still being awaited.

The report added that there is no official offer on the table yet, and Amazon’s headquarters in Seattle will need to act quickly for any chance of advancing the talks to the next stage.

It added that the early discussions may not lead to a transaction considering the complicated structure of the deal in its present form.

“Buying the entire company will be too expensive at a valuation of $10-12 Bn. Also, Amazon is not typically known to pick up minority stakes,” the source added.

At a time when quick commerce has gained immense popularity in the country, Amazon India is increasing its focus on same-day delivery. With investments in strengthening its delivery network, same-day deliveries for Prime members have doubled. Additionally, Amazon India has expanded its capabilities to deliver 4 Mn products the next day, with half of all Prime orders being delivered either on the same day or the next day across all pin codes.

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