After Chinese investors, online food delivery startup Swiggy gets attention from Amazon India
However, Amazon India and Swiggy are in initial discussions only and talks may fall apart too.
Bengaluru-based Swiggy, which competes with
AdvertisementAs per Morgan Stanley, online penetration in food delivery services was only 2 per cent in India while it was 20-30 per cent in China, the UK and Canada.
"Everyone is talking since they are doing really well but it is not certain that a deal will be closed," sources told ET.
Swiggy was founded by BITS-Pilani alumnus Sriharsha Majety, the CEO, and Rahul Jaimini and Nandan Reddy.
ET reported Swiggy's executives have held three meetings with Amazon's India head Amit Agarwal.
Swiggy has raised about $72 million so far and has investors including, Accel Partners, Norwest Venture Partners and Bessemer Venture Partners.
"There are synergies in hyperlocal cross-utilisation. Amazon will get a big food business and a hyper-local fleet on whose backbone they can grow aggressively in grocery as well," an investor in the hyper-local market told ET.
Advertisement"For Swiggy, getting a high order density will lead to better utilisation of the hyper-local fleet leading to a sustainable business. After food, the next logical expansion would be grocery and Amazon Now does grocery, so maybe that's the synergy."
- Apple AirTag, iPad Pro, new iMac with M1 chip India pricing and availability details
- Leg hair, don’t care: Why showing women’s body hair in Indian ads is long overdue
- PM Narendra Modi stresses that lockdown will be the last option, says centre and states are working on oxygen supply
- Desperately need supply of oxygen to save lives, appeals Delhi's Ganga Ram Hospital
- 4.6 million doses of COVID-19 vaccine were wasted in India — enough to vaccinate half of Bangalore