Ecommerce major
Flipkart
and
Zepto
were reportedly in talks but the deal failed to get through. According to an exclusive report in Economic Times, ecommerce major Flipkart and Zepto held talks for a potential deal but the discussions fell through and are unlikely to be revived, said two people in the know of the matter. The report, quoting two people in the know of the matter, added that discussions are unlikely to be revived.
Flipkart is owned by US retail giant Walmart.
What led to deal talks failing
Zepto is said to have opted for a financial round over a strategic sale. “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..,” said the report, quoting one of the persons cited.
The report added that people familiar with the situation said Flipkart was clear on having a large shareholding with the founders running the company. “Flipkart didn’t want to strike a deal which would give it a minority stake. That’s when the talks ended,” said the report quoting a person close to the negotiations.
Deal shows might of quick commerce
Zepto's fundraising efforts highlight the growing importance of the quick commerce sector. This news also follows Flipkart's reported interest in acquiring a stake in Zepto, reflecting the e-commerce giant's desire to gain a foothold in the instant delivery space. Flipkart is reportedly planning its own quick delivery service launch in July.
The Economic Times has been tracking the expansion of quick commerce players like Zepto, Swiggy Instamart, and Zomato's Blinkit beyond grocery staples, potentially threatening the dominance of established e-commerce players like Flipkart and
Amazon India
.
Industry reports predict a bright future for quick commerce, with a projected market size of $34 billion by FY29. This rapid growth makes Zepto an attractive investment opportunity, potentially explaining the high valuation expectations.
English (US) ·