With fresh round of funding, Flipkart, Amazon India and Paytm are planning to expand their domain to food delivery business. The ecommerce giants held discussions with the flagship food delivery establishments like Zomato and Swiggy, said sources.
Flipkart recently held discussions with Zomato about the former’s entry to the food delivery segment. The discussion was held in the presence of the representatives of Tensent, the key investor in Flipkart. But Zomato turned down the proposal as the company had already made pact with Chinese ecommerce conglomerate, Alibaba.
Now Flipkart has initiated discussions with Swiggy for an investment of about $100 million. Amazon India had been trying to invest in Zomato and Swiggy, but the talks didn’t go well. Now the global ecommerce leader is holding discussions with Freshmenu for a strategic investment which helps Amazon to expand its meal kit delivery business.
Earlier this year, Paytm has discussions with Swiggy. Now Ant Financial, Paytm’s key investor, is in discussion with Zomato for an investment. If the companies close the deals successfully, then Indian market will see a stiff competition in food delivery segment too.