Scribd
Upload
32 views6 pages

Merger Case Study

Case competition presentation on a merger between amazon fresh and swiggy instamart

Uploaded by

Diya 612
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
32 views6 pages

Merger Case Study

Case competition presentation on a merger between amazon fresh and swiggy instamart

Uploaded by

Diya 612
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

MERGER

AMAZON FRESH
& SWIGGY
INDIAMART
INDIAN GROCERY MARKET ANALYSIS
TRENDS Market Challenges
An increase in the usage of flexible payment and delivery services is the
primary trend in the India grocery market.
Moreover, with the growing use of flexible payment and delivery Abundance of physical of stores
services, many online grocery stores have seen a significant increase in High cost of infrastructure for maintaining
their business activity. This trend is expected to continue as people
become aware of the benefits of these services. perishables
Lack of brand loyalty amongst customers
MARKET DRIVERS
Change in lifestyle of Indian consumers, increasing the popularity of
online grocery stores.
Increasing digital literacy and rising investments in grocery store
CAGR 8.06%
Technological innovations by market players like multiple payment
options, ordering at the same time from multiple vendors, live order
tracking etc.
7.9%

Growth rate of
produce industry

03
COMPETITIVE LANDSCAPE
Add a little bit of body text
PERFORMANCE ON
PRESENCE OF
BRANDS GOOGLE DIGITAL WALLET OPTIONS
PHYSICAL STORE
PLAYSTORE
Average Rating Downloads

Spencers 4.7 More than 1 million


Net Banking, Credit Cards, Debit Cards ,
Cash/ Card on Delivery

Amazon Fresh 4.3 More than 100 million Debit Cards, Credit Cards, Net Banking,
Cash on Delivery (COD)

Blink It 4.4 More than 10 million Debit Cards, Credit Cards, Net Banking
Cash on Delivery

Big Basket 4.7 More than 10 million Debit Cards, Credit Cards, Net Banking
Cash on Delivery

Natures Basket 3.6 More than 1 million Net Banking, Credit Cards,
Debit Cards

Jio 4.5 More than 50 million Debit Cards, Credit Cards, Net
Banking, Cash/Card on Delivery
Acquisition target-
Swiggy Instamart
Swiggy has 10+ years of food logistics expertise
Instamart’s market share is about 27%- 2nd place behind Blinkit
Swiggy is planning for an IPO, will be open for a sale
Swiggy has a robust logistics setup which will help tackle the
operational challenges associated with delivery of fresh products
Unlike Blinkit and Zepto which have a presence majorly in tier 1 cities
only, Swiggy Instamart’s revenue is diversified into tier 2 cities as well
Pre- Acquisition analysis
Swiggy Instamart revenue FY 2023: Rs. 3,220 CR

Using the relative valuation method:


Zepto and Blinkit received a valuation of an average of 6x of their revenue
So, relative valuation of Swiggy Instamart
= Rs. 3,220 CR * 6
= Rs. 19,320 CR
Post-Acquisition Analysis
Synergy: 1+1>2
Cost Synergy: Savings on cold-storage facilities, optimised logistics and delivery
routes, delivery partners, By aligning processes and streamlining operations, they
can eliminate duplicate tasks, reduce administrative overhead, and improve overall
productivity
Time-To-Market synergy: Time will be saved for expansion since Instamart already
has a robust logistical framework and market share
Location synergy: leveraging Swiggy's existing network of restaurant partners or
Amazon's local vendor relationships can strengthen the supply chain and improve
the quality of offerings for customers, Swiggy’s presence is in the following cities:
Ahmedabad, Bengaluru, Chennai, Coimbatore, Chandigarh, Delhi, Gurugram, Hyderabad,
Indore, Jaipur, Kolkata, Kochi, Lucknow, Ludhiana, Mumbai, Noida, Pune, and Vizag

You might also like