Dunzo refutes Flipkart acquisition talks, terms it “hearsay”

Responding to various media reports about e-commerce brand Flipkart acquiring Dunzo, the latter refuted the claims and called it ‘hearsay.’

According to a Dunzo spokesperson, the company is on path to free cash flow break and have not had any conversation with any player for an acquisition of the business.

This response follows earlier media reports that stated that Flipkart had held discussions in recent weeks about potentially acquiring the Reliance Retail backed Dunzo.

Complexities surrounding Dunzo’s ownership structure had been the bone of contention, the reports noted. Flipkart, under Walmart's ownership, harbors doubts regarding the potential gains it could secure through an acquisition of Dunzo, given the latter’s numerous IP ties with Reliance Retail. Furthermore, Reliance Retail, as Dunzo's principal investor, has yet to endorse the proposed deal.

The speculations about the acquisition emerged amidst a tumultuous period for Dunzo, marked by challenges in fundraising and meeting employee payroll obligations.

Media reports also noted that in the last three years, Dunzo has held talks with multiple companies for an acquisition, including Tata and Zomato.

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