Indian e-commerce giant Flipkart has been in talks with Dunzo, the hyperlocal delivery startup backed by Reliance Retail, about a potential acquisition, according to three sources familiar with the matter told TechCrunch. However, the complex ownership structure of Dunzo has presented challenges in reaching a deal between the two parties, according to two additional sources involved in the discussion.
The talks are said to still be ongoing, with all three sources confirming the negotiations. This potential acquisition comes after a turbulent year for Dunzo, as they have faced difficulties in securing funding and meeting employee payroll. The once $500 million-valued startup has faced stiff competition from startups like Zepto, Swiggy, and Zomato’s BlinkIt in the hyperlocal delivery market over the last few quarters.
Despite the ongoing negotiations, the deal has yet to be finalized as both parties work to finalize the terms. One of the obstacles in finalizing the deal is Flipkart’s hesitation around what aspects of Dunzo’s operations it will have control over if the acquisition were to move forward. On the other side, Reliance Retail, being the largest investor in Dunzo, has not yet given approval for the acquisition.
Both Flipkart and Dunzo have not responded to requests for comment at this time.
This is a developing story, and we will provide updates as they become available.
