India's Flipkart looking to buy Reliance-backed Dunzo, TechCrunch reports
Flipkart's logo is seen on a cart at one of their delivery centres in New Delhi, India, October, 4, 2023. REUTERS/Anushree Fadnavis/File Photo Purchase Licensing Rights
BENGALURU, Feb 20 (Reuters) - Walmart (WMT.N)-backed Indian e-commerce firm Flipkart has held discussions over potentially acquiring the on-demand delivery platform Dunzo, TechCrunch reported on Tuesday, citing three people familiar with the matter.
While talks are still ongoing, complexities surrounding Dunzo's ownership structure have impeded the two parties from coming to an understanding over a deal, the report said.
The retail arm of Reliance Industries (RELI.NS), which picked up a 26% stake in Dunzo in 2022 for $200 million, has not approved the deal yet, 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 did not immediately respond to Reuters' requests for comment.
Cash-strapped Dunzo, which is also backed by Alphabet's (GOOGL.O) Google, has announced restructuring, deferment of salaries and layoffs in the recent past.
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Reporting by Hritam Mukherjee in Bengaluru; Editing by Tasim Zahid
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