SUMMARY
Complexities around Reliance-backed Dunzo’s ownership structure has made it difficult for both parties to reach a deal
While the talks between Flipkart and Dunzo are ongoing, the ecommerce giant is sceptical about what all it will be able to take over through the acquisition
Dunzo has been struggling due to a cash crunch for almost a year, which has resulted in layoffs and delays in salary payments
Walmart-backed ecommerce major Flipkart is reportedly exploring acquiring cash-starved hyperlocal delivery startup Dunzo.
As per a TechCrunch report, complexities around Reliance-backed Dunzo’s ownership structure has made it difficult for both parties to reach a deal.
It is pertinent to note that Dunzo has been struggling due to a cash crunch for almost a year now. This has resulted in the startup undertaking multiple rounds of layoffs and also halting employee salary payments for months. The startup also saw the resignations of some of its key board members and cofounder Dalvir Suri last year.
As per the report, the acquisition talks between Flipkart and Dunzo are still ongoing. However, the deal is yet to materialise also because Flipkart is sceptical about what all it will be able to take over through the acquisition.
Emails sent to Dunzo and Flipkart did not immediately elicit a response. The story will be updated on receiving a response.
(The story will be updated soon.)
