look news india
Online food delivery platform Swiggy is all set 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 familiar with the matter said that both the companies can join hands to grow the business rapidly under Intamart. Let us tell you that Swiggy has submitted draft papers to SEBI to launch an IPO of about $ 1.25 billion (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 a stake in the upcoming IPO or buying a stake in Instamart. However, it is also being said that both the paths will not be easy for Amazon. No official statement has been issued on this yet. It is believed that Swiggy only wants to sell its fast commerce business, while Amazon is not interested in buying the company's food delivery business.
The confusion is this… whether it is a small investment or a full purchase,
Sources related to the matter say that buying the entire stake of Swiggy is a difficult task as its price is coming to 10 to 12 billion dollars i.e. around 1 lakh crore rupees. On the other hand, Amazon is not interested in buying a small stake. You must be aware that in the online food delivery sector, Swiggy competes with Zomato, whose market value is double i.e. Rs 1.9 lakh crore.
What's the problem with the deal?
Both Swiggy and Zomato have not yet separately valued their fast commerce verticals. Obviously, the biggest problem with Swiggy buying this business is its valuation. Goldman Sachs recently valued Zomato's e-commerce unit Blinkit at around $13 billion (about Rs 1.06 lakh crore). However, Swiggy is yet to be valued.
What is Quick Commerce Business Model?
Fast commerce has brought new competition in the market for e-commerce companies. Companies are now focusing on fast delivery. In this series, Swiggy launched Instamart, Zomato launched Blinkit and Zepto, which is competing with both of them, is also doing fast business. Now Flipkart is also 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 start its new business named Flipkart Minutes.