Amazon India is reportedly in early talks with Swiggy to acquire a stake in its quick commerce business, Instamart.
This comes as Swiggy confidentially files for a Rs 10,414 crore ($1.25 billion) IPO, one of the largest for an internet firm in India.
While Amazon has shown interest, there are significant hurdles, including the complicated deal structure.
Sources suggest Amazon's interest lies in either a pre-IPO stake or a buyout of Instamart.
However, Swiggy is unlikely to sell only its quick commerce business, and Amazon is not interested in Swiggy's food delivery segment.
Amazon has been developing its own quick commerce service in India, which requires global approval for a new vertical.
Swiggy, meanwhile, is working to reduce Prosus's stake below 26% before the IPO.
Despite the challenges, Amazon's potential investment highlights the growing competition and interest in India's rapid delivery market.
