 "Bachchan family office joins quick commerce frenzy with Swiggy stake")
The family office of Bollywood actor Amitabh Bachchan has picked a small stake in quick commerce giant Swiggy, The Economic Times reported on Wednesday.
The details of the financial transaction remain undisclosed but significant, the report mentioned.
The development comes amid heightened investor interest in the quick-commerce industry, driven by growing demand for faster delivery services. Swiggy deals in online food delivery and quick ‘10-minute’ grocery delivery services segment and is one of the leading players in the market besides Zomato and Zepto.
To be clear, Zepto does not offer food delivery services but boasts a valuation of $5 billion dollars due to its impressive grocery delivery business model.
Zomato and Swiggy, once rivals in food delivery, are now competing directly in the grocery delivery market. Zomato, with the strong performance of its grocery service Blinkit, has seen its market capitalization reach Rs 2 trillion. Meanwhile, Swiggy’s valuation stands at $15.1 billion as of March 2024, according to Baron Capital. Swiggy’s grocery service segment platform is known as Instamart.
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In June, Business Standard reported that the e-commerce market in India is expected to grow 2.5 times faster than the offline market by the end of this decade, as projected by Deloitte. The report forecasts that the online market will surge to $325 billion by 2030, though the offline retail market will remain larger, at $1,605 billion in the same year.
Additionally, a Bank of America report anticipates that quick commerce could reach 25 million households in India within the next five years.
The high potential of the quick commerce business model has led major players like Reliance, Flipkart, and Amazon to explore launching their ventures in this sector. Moreover, the attractive prospects of the quick commerce business model have pushed brands such as footwear major Bata to explore selling their products through these platforms.