Flipkart and Zepto, e-commerce platforms, were in talks for a potential deal. However, the talks faltered and are not likely to be revived, as per a report by the Economic Times.
To close a fresh funding round, Zepto is in talks with private equity funds along with existing investors. The company is expected to get a valuation of $22.5 billion, which is almost double the previous round, as per the Economic Times report. The report says that the company is in talks with private equity firms such as General Atlantic and the Abu Dhabi Investment Authority (ADIA).
Talking about the failed deal, a source who spoke with the Economic Times said, “The companies met, and Flipkart made an offer to Zepto, valuing it at under $2 billion, but the deal didn’t go ahead. Zepto’s decision to opt out was centered around Flipkart wanting to pick up a majority stake in the startup. ”
The report further adds that Flipkart was insisting on a larger shareholding. With the company not settling for a minority stake, the talks ended, according to the report.
Flipkart has been eyeing the e-commerce segment for a while. In March of this year, it was said that the e-commerce major intends to enter the instant delivery service by May. The service will be available in select locations. The company was also in talks to acquire hyperlocal delivery start-up Dunzo in February, as per a TechCrunch report. However, the complex ownership structure of Dunzo made it hard for the companies to have an acquisition deal.
Before Flipkart, PhonePe was in talks with Dunzo to make a significant investment later. However, the talks failed. The quick commerce market in India has been growing extensively. According to the Redseer report, the quick commerce market grew year-on-year by 77 percent to reach $2.8 billion in GMV (gross merchandise value) in 2023. No wonder Flipkart is trying to penetrate the quick commerce market with all its strength.
