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Walmart-backed Indian e-commerce company Flipkart has discussed a possible acquisition of on-demand delivery platform Dunzo, TechCrunch reported Tuesday.

The report said negotiations were still ongoing, but complexities surrounding Dunzo’s ownership structure had prevented the two sides from reaching an understanding on the deal.

The retail arm of Reliance Industries, which acquired a 26% stake in Dunzo for $200 million in 2022, is yet to approve the deal, the report added.

In an emailed response to Reuters, Dunzo denied having had “any talks with any player to acquire the business.”

Flipkart and Walmart did not immediately respond to Reuters’ requests for comment.

Cash-strapped Dunzo, backed by Alphabet’s Google, recently announced restructuring, salary deferrals and layoffs.

In April last year, Dunzo raised $75 million (about Rs 614 million) in funding through convertible bonds and laid off about 30% of its staff as it planned to revamp its business model.

Lead backers Reliance Retail and Alphabet added about $50 million (roughly Rs. 490 million) in funding, with other existing investors putting in the rest.

Under the new business model, the company is said to be reducing its dark stores by about 50% and operating only those that are profitable or close to breaking point.

In July 2023, Walmart paid $1.4 billion (about Rs. 11,520 crore) to buy hedge fund Tiger Global’s Flipkart investment. The deal values ​​the e-commerce company at $35 billion (approximately Rs. 2,88,010 crore).

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