Flipkart's talks with Zepto for a potential stake purchase deal has fallen through and are unlikely to be revived, as per report.
highlights Flipkart’s interest in the instant-delivery segment in which it has lagged. The company is looking forward to launching its own quick delivery service with a time limit of deliveries under 30 minutes.
Zepto is reportedly in talks with private equity funds along with existing investors to close a fresh funding round. It is expected to get a valuation of nearly $2.5 billion on the back of the momentum in the quick commerce sector in the past few months.
It is reported that a source 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. ”
It is also reported that Flipkart was insisting to have a majority of the 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.
