Amazon, the global e-commerce giant, is in talks with Indian Food and Quick commerce company 'Swiggy' to buy its quick commerce business 'Instamart'. Economic Times reported citing sources familiar with the matter that the talk is in a very early stage and is unlikely to be completed considering the complicated structure of the deal in the current scenario.

'Amazon has shown interest in either picking up a stake before the ongoing IPO process or buying the Instamart business,' Economic Times reported.

The report says that early discussions did not suggest that the deal would succeed, given the complex nature of the deal in its current form. According to reports, it is unlikely that Swiggy will sell its take-out business alone, while Amazon is not interested in entering the food delivery space.

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Furthermore, since Amazon is not accustomed to taking minority stakes, a deal said to be worth between $10 billion and $12 billion would be very expensive for the e-commerce giant.

The report states that Amazon's India team has been working on launching its Express Commerce initiative for months, but starting in a separate sector will require global approval as the company does not offer this service in any other global markets.

Significantly, another ET report earlier this year said that Flipkart had tried to strike a similar deal with Swiggy last year, but the talks failed due to a valuation mismatch.

Swiggy filed a draft red herring prospectus (DRHP) for its IPO with the Securities and Exchange Board of India (Sebi) via a confidential filing route in April this year. Last week, the company launched a $65 million USD liquidity program.

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