E-commerce giant Amazon has approached Swiggy and showcased its interest in the company’s quick commerce business Instamart, a report Economic Times stated while citing 3 sources aware of the matter. However, there is no official offer on the tablet yet and the report states that early discussions paint a difficult chance of transaction getting complete given the complicated structure of the deal in its present form.
“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,” the Economic Times report cited a source as saying.
The report notes that early discussions haven’t hinted at a high chance of the transaction being a success given the complicated nature of the deal in its present form. Reportedly, Swiggy is unlikely to sell only its quick commerce business while Amazon isn’t interested in entering the food delivering space.
Moreover, with Amazon not in a habit of taking minority stakes, the deal which is said to be valued at $10-12 billion would be too expensive for the e-commerce giant.