Flipkart decides to cut-off the stake purchasing deal with Zepto

By siliconindia  |  Friday, 19 April 2024, 12:37 IST

Flipkart decides to cut-off the stake purchasing deal with Zepto
Flipkart's is in talk with Zepto regarding a potential investment deal having collapsed and are not expected to be resumed. Zepto is currently engaged in discussions with private equity funds as well as its current investors in order to finalize a new round of funding. Based on the recent growth and success of the quick commerce industry, it is anticipated that Zepto will achieve a valuation of approximately $2.5 billion. This valuation reflects the positive momentum experienced by the company in the quick commerce sector over the past few months, as stated in the report.
 
Flipkart's keenness on Zepto demonstrates its eagerness to tap into the instant-delivery market, an area where it has fallen behind. Flipkart intends to introduce its own rapid delivery service, guaranteeing deliveries within a 30-minute timeframe.
 
The discussions between the Bengaluru-based company and quick commerce player Dunzo for a substantial investment did not advance, despite previous talks. The initial report on the Flipkart-Dunzo discussions was covered by Techcrunch.
 
Acoording to the media report mentioned that PhonePe approached Dunzo for its ONDC-led ecommerce business, however, the transaction was unsuccessful due to the company's board blocking the proposal.
 
The Open Network for Digital Commerce (ONDC) serves as a platform supported by the Indian government, aiming to provide a marketplace for sellers and offline businesses. Its purpose is to address the prevailing dominance of Amazon and Flipkart.
 
The recent UBS report indicates that the fast-growing ecommerce industry is projected to reach a gross merchandise value (GMV) of approximately $34 billion by FY29, with a total addressable market (TAM) potential of $520 billion.
 
The report declared,"We believe the three large quick commerce platforms currently have a comfortable advantage on the core infrastructure needed — rollout of dark stores and logistics infrastructure — although a more fragmented market structure over the medium term cannot be ruled out.”
 
 
 

CURRENT ISSUE

BEST STARTUPS TO WORK FOR

siliconindia