Indian e-commerce giant Flipkart has had discussions in recent weeks about potentially acquiring Dunzo, the hyperlocal delivery startup backed by Reliance Retail, three sources familiar with the matter told TechCrunch. However, complexities surrounding Dunzo’s ownership structure have made it difficult for the two parties to reach an acquisition deal, according to two sources familiar with the talks.
The 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 payroll. The startup, once valued at $500 million, has ceded much of the hyperlocal delivery market to upstart Dunzo, Swiggy and Zomato’s BlinkIt in recent quarters, according to analysts at Bernstein.
The deal has yet to materialize because Flipkart is scrambling to understand precisely what all it will be able to takeover if it were to acquire Dunzo. Reliance Retail, the largest investor in Dunzo, has also not green-lit a deal.
This is a developing story. Check back for updates.
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