According to a report from TechCrunch, Walmart-backed Flipkart has held talks to acquire on-demand distribution platform Dunzo. Negotiations are still ongoing, according to three people familiar with the matter. The report said the main point of contention is the complexities surrounding Dunzo's ownership structure. This is preventing the two countries from reaching an agreement, it added.
The report claimed that “all three parties said that previously unreported negotiations are still ongoing.” The acquisition talks come after a tumultuous year for Dunzo, which has struggled to raise capital and pay employees. Dunzo, which has raised about $500 million to date, has ceded much of the hyperlocal delivery market to startups Zepto, Swiggy and Zomato's Blinkit in recent quarters. ”
Reliance Industries' retail arm acquired a 26% stake in Dunzo for $200 million in 2022, but has not yet approved the deal. However, Dunzo refuted this report, calling it “hearsay.”
“As of March 2024, we are still on track to achieve positive free cash flow, and we have not had any discussions with any company regarding acquisition,” Dunzo said.
“The deal has yet to materialize as at least two companies are vying to hammer out the terms,” the report said. I am skeptical that it will be possible.” It has several IP relationships with Reliance Retail, India's largest retail chain. Reliance Retail, Dunzo's largest investor, has also not approved the deal. ”
Dunzo also said he has held acquisition talks with several companies, including Tata and Zomato.
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