Flipkart Wanted To Sign A Deal With Swiggy To Enter Quick Commerce: Report

In a bid to secure a position in the rapidly growing quick commerce market, Indian e-commerce behemoth Flipkart reportedly contemplated a partnership with food delivery platform Swiggy.

What Happened: Flipkart explored a potential stake purchase in Swiggy around eight to ten months ago, aiming to forge an alliance amid the disruptive rise of quick commerce, ET reported citing sources. However, the discussions were halted due to a valuation mismatch. Following the unsuccessful talks, Swiggy filed a confidential draft application in April to list on the public markets.

Prosus, the largest investor in Swiggy with a 33% stake, was also involved in the negotiations and expressed interest in divesting some of its holdings, the sources told ET. The report added that the news was denied by a Swiggy spokesperson.

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Why It Matters: The news comes just months after reports of Flipkart’s failed attempt to acquire another major quick-commerce player Zepto. Flipkart’s discussions with Zepto regarding a potential acquisition fell through, with Zepto choosing to secure new funding instead.

The quick commerce sector’s momentum has significantly boosted Zepto’s valuation over the past few months. Earlier in the month, Zepto raised a staggering $665 million in a funding round, marking the largest investment in India’s quick commerce sector that year. The funding round pushed Zepto’s valuation to $3.6 billion, highlighting the sector’s potential.

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Posted In: NewsTechFlipkartSwiggy