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Amazon India is in talks to acquire a stake in Swiggy’s quick commerce business, Instamart.
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The deal faces challenges, including Swiggy’s reluctance to sell only its quick commerce business and Amazon’s hesitation to buy a minority stake.
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Swiggy is preparing for an IPO and wants to reduce the stake of its largest shareholder, Prosus, to less than 26%.
Amazon India is reportedly in talks to acquire a stake in Swiggy’s Instamart, a quick commerce business. However, the deal is facing several roadblocks, including Swiggy’s reluctance to sell only its quick commerce business. Amazon is interested in acquiring a majority stake, but Swiggy is not willing to part with its food delivery business, which is a significant contributor to its revenue.
The deal is further complicated by Swiggy’s plans to go public. The company has filed draft documents with SEBI for a Rs 10,414 crore IPO and wants to reduce the stake of its largest shareholder, Prosus, to less than 26%. Amazon’s acquisition of Instamart would require global clearance and a separate vertical, as the e-commerce giant does not offer quick commerce services in any of its markets globally.
The talks are still in the early stages, and it is unclear whether a deal will materialize. If successful, the acquisition would mark a significant expansion of Amazon’s presence in the Indian e-commerce market.
