Flipkart in talks to buy Reliance-backed Dunzo? ‘Yet to materialize as…’

The major point of contention are the complexities surrounding Dunzo's ownership structure, the report said.

Walmart-backed Flipkart held discussions over acquiring the on-demand delivery platform Dunzo, TechCrunch reported. Talks are still ongoing, three people familiar with the matter said as per the report. The major point of contention are the complexities surrounding Dunzo's ownership structure, the report said. This has impeded the two parties from coming to an understanding over a deal, it added.

A worker at Flipkart, a leading e-commerce firm in India, pulls a cart full of items inside its fulfilment centre on the outskirts of Bengaluru, India.(Reuters)

The report claimed, “The previously unreported 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. Dunzo, which has raised about $500 million to date, has ceded much of the hyperlocal delivery market to upstarts Zepto, Swiggy and Zomato’s BlinkIt in recent quarters.”

The retail arm of Reliance Industries, which picked up a 26% stake in Dunzo in 2022 for $200 million, has not approved the deal yet. Although, Dunzo refuted the report and termed it “hearsay”.

Dunzo said, “We are on path to free cash flow break even in the month of March’24 and we have not had any conversation with any player for an acquisition of the business.”