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Flipkart, a number one participant within the Indian e-commerce sector, has reportedly been in talks a few potential acquisition of Dunzo, a hyperlocal supply startup backed by Reliance Retail, in response to three sources who spoke to TechCrunch. Nonetheless, the advanced possession construction of Dunzo has posed challenges in reaching an acquisition settlement, two sources aware of the discussions revealed.These beforehand undisclosed negotiations are nonetheless in progress, all three sources confirmed to the corporate. The talks come after a difficult yr for Dunzo, which has confronted difficulties in elevating funds and paying its employees. Regardless of elevating round $500 million up to now, Dunzo has misplaced a good portion of the hyperlocal supply market to newcomers like Zepto, Swiggy, and Zomato’s BlinkIt in current instances.Deal nonetheless to be finalisedThe deal is but to be finalised as at the least two events are working to kind out the phrases. Flipkart, a Walmart-owned firm and a frontrunner within the Indian e-commerce market with a valuation exceeding $32 billion, is unsure about what it could achieve from buying Dunzo, which has a number of IP relationships with Reliance Retail, India’s largest retail chain. The deal has not but acquired approval from Reliance Retail, Dunzo’s largest investor.Flipkart sees potential in a few of Dunzo’s belongings, together with the youthful firm’s business-to-business choices based mostly in Bengaluru.What Dunzo stated on the dealIn response to the report, Dunzo denied the claims, calling them “hearsay.” A spokesperson added, “We are on track to break even in terms of free cash flow in March 2024 and have not engaged in any discussions with any party regarding the acquisition of the business.” Over the previous three years, Dunzo has reportedly held acquisition talks with a number of firms, together with Tata and Zomato, as per greater than a dozen people aware of the matter.The continuing discussions between Flipkart and Dunzo spotlight the diminishing prospects for immediate supply firms. These companies have been operational for years, however their recognition surged in the course of the early years of the Covid-19 pandemic when homebound individuals turned to firms like GoPuff, Getir, and Dunzo for fast supply of a variety of on a regular basis objects.Dunzo, established in 2014, was one of many first startups to discover this mannequin. With backing from Google, Blume Ventures, and Lightbox, it aimed to revolutionise India’s e-commerce sector with its 30-minute supply promise to prospects.Whereas Dunzo additionally operated within the B2B sector, it refocused on hyperlocal providers as the worldwide curiosity in prompt grocery supply grew, investing over $100 million to ascertain darkish shops in quite a few Indian cities.

#Flipkarts #Acquisition #Dunzo