Flipkart considered acquiring a stake in Swiggy approximately eight to ten months ago, as both companies aimed to form an alliance in response to the growing quick commerce sector, as per a report by the Economic Times. However, the discussions reportedly ended due to a disagreement over valuations.
Once the talks failed, Swiggy submitted a confidential draft application for a public listing in April, the report added. Swiggy filed its draft IPO of $1.3 billion with the Securities and Exchange Board of India (SEBI). The company reportedly aims to raise an additional $800 million through an offer-for-sale component and around $450 million in new financing.
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Prosus, Swiggy's largest investor with a 33 per cent stake, was also involved in the negotiations and was interested in selling part of its share, according to the report. As per the Economic Times, a source said, “There was a discussion for a majority stake in Flipkart where Prosus and other investors would offload stakes, but besides valuation (mismatch), a majority stake (demand) was also a hurdle.”
However, Swiggy has denied this development. The company spokesperson reportedly said that no such conversation, discussion, or negotiation took place.
Meanwhile, e-commerce platform Flipkart is planning to have its own quick commerce platform. By the second week of July, the company is planning to launch its own quick commerce version, ‘Flipkart Minutes’, as per a report by Business Standard. The company is planning to target a fifteen-minute delivery window.
Previously, Flipkart did attempt to enter the quick commerce space with Flipkart Quick, where the delivery window was ninety minutes. However, it never took off. Flipkart also tried to have a deal with Zepto, but the talks failed.
The report also highlights that Flipkart is focusing on its grocery fulfillment centers for slotted deliveries. A new grocery store was also reportedly launched by the company in Rajasthan’s Jaipur.
