Walmart-backed Indian e-commerce giant Flipkart is reportedly exploring the possibility of acquiring the on-demand delivery platform Dunzo, according to sources familiar with the matter, as reported by TechCrunch on Tuesday.
Discussions between Flipkart and Dunzo are said to be underway, but the process has encountered complications related to Dunzo's ownership structure, preventing both parties from reaching a consensus on the potential acquisition.
The report highlights that the retail arm of Reliance Industries, which acquired a 26% stake in Dunzo for $200 million in 2022, has yet to approve the deal, adding further complexity to the negotiation process.
In response to inquiries from Reuters, Dunzo stated via email that they have not engaged in any discussions regarding the acquisition of their business by any entity.
At the time of reporting, neither Flipkart nor Walmart has provided an official comment on the matter.
Dunzo, supported by investments from Alphabet's Google, has faced financial challenges, leading to recent measures such as corporate restructuring, salary deferments, and staff layoffs.
