Indian e-commerce giant Flipkart has held discussions in recent weeks about potentially acquiring Dunzo, the hyperlocal delivery startup backed by Reliance Retail, three sources familiar with the matter told TC. However, complexities surrounding Dunzo’s ownership structure have made it difficult for the two parties to reach an acquisition deal, according to two sources familiar with the talks.
The talks are still ongoing, all three sources said. The acquisition talks follow a turbulent year at Dunzo, which has been struggling to raise cash and make staff payroll. The startup, once valued at $500 million, has ceded much of the hyperlocal delivery market to upstarts Zepto, Swiggy and Zomato’s BlinkIt in recent quarters.
The deal has yet to materialize because Flipkart is skeptical about precisely what all it will be able to take over if it were to acquire Dunzo. Reliance Retail, the largest investor in Dunzo, has also not approved the deal.
Flipkart and Dunzo didn’t immediately respond to a request for comment Tuesday evening.
This is a developing story. Check back for updates.
