Walmart-backed Indian e-commerce agency Flipkart has held discussions over doubtlessly buying the on-demand supply platform Dunzo, TechCrunch reported on Tuesday, citing three folks accustomed to the matter.
While talks are nonetheless ongoing, complexities surrounding Dunzo’s possession construction have impeded the 2 events from coming to an understanding over a deal, the report stated.
The retail arm of Reliance Industries, which picked up a 26 % stake in Dunzo in 2022 for $200 million, has not permitted the deal but, the report added.
Dunzo, in an emailed response to Reuters, denied having “any conversation with any player for an acquisition of the business”.
Flipkart and Walmart didn’t instantly reply to Reuters’ requests for remark.
Cash-strapped Dunzo, which can be backed by Alphabet’s Google, has introduced restructuring, deferment of salaries and layoffs in the latest previous.
Last 12 months in April, Dunzo had secured funding of $75 million (roughly Rs. 614 crores) by convertible notes and had laid off about 30 % of its workers because it deliberate a revamp of its enterprise mannequin.Â
Key backers Reliance Retail and Alphabet had added about $50 million (roughly Rs. 409 crores) of the funding, with different present traders placing in the remainder.Â
Under the brand new enterprise mannequin, the corporate was stated to minimize about 50 % of its darkish shops and run solely people who might be worthwhile or have been nearing that threshold.
In July 2023, Walmart paid $1.4 billion (roughly Rs. 11,520 crore) to purchase out hedge fund Tiger Global’s funding in Flipkart. The transaction valued the e-commerce agency at $35 billion (roughly Rs. 2,88,010 crore).Â
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