After Chinese investors, online food delivery startup Swiggy gets attention from Amazon India

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Amazon India is planning to invest in online food delivery startup Swiggy, which also got attention from Chinese players like Ele.me that is backed by Alibaba.

However, Amazon India and Swiggy are in initial discussions only and talks may fall apart too.

Bengaluru-based Swiggy, which competes with Zomato and Foodpanda, is getting lot of attention from strategic investors as it is fulfilling close to 40,000 orders per day.

As 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.

"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."
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