Swiggy and Amazon are going to join hands! What wonders will this jugalbandi of these two giants produce?

New Delhi. Online food delivery platform Swiggy has prepared to launch its IPO. Meanwhile, the company has received a big offer from across the seven seas. Amazon India has proposed to join hands with the company. Three people associated with the matter say that both the companies can join hands to expand the quick commerce business under Intamart. Let us tell you that Swiggy has submitted draft papers to SEBI to bring an IPO of about 1.25 billion dollars (Rs 10,414 crore).

Sources related to the matter say that there can be two ways for Amazon and Swiggy to join hands. Amazon is eyeing to buy stake in the upcoming IPO or to take stake in Instamart. However, it is also being said that both the ways will not be easy for Amazon. No official statement has been issued on this 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.

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Confused…buy it whole or a little
Sources related to the matter say that buying the entire stake of Swiggy is a difficult task, because its valuation is 10 to 12 billion dollars i.e. around 1 lakh crore rupees. On the other hand, Amazon is not showing interest in buying a small stake. You must be aware that in the online food delivery sector, Swiggy is competing with Zomato, whose market value is double i.e. 1.9 lakh crore rupees.

what is the problem in the deal
Both Swiggy and Zomato have not yet separately evaluated their quick commerce verticals. Obviously, the biggest problem in buying Swiggy’s business is its valuation. 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 a new competition in the market for e-commerce companies. Companies are now focusing on faster delivery. In this series, Swiggy launched Instamart, Zomato launched Blinkit in the market and Zepto, which is giving competition to both of them, is also in the quick commerce business. Flipkart is also now thinking of expanding its business and for this the company has received a fund of 1 billion dollars from its parent company Walmart. The company is going to launch its new business in the name of Flipkart Minutes.

Tags: Amazon Prime, Business news, IPO