Zepto rejects Flipkart’s offer, aims to raise at $2.5 B valuation: Report
Flipkart’s attempt to gain traction in India’s instant delivery market has been derailed by the failure of Indian fast commerce unicorn Zepto to reach an agreement on a sale, sources told The Economic Times.
At a little under US $2 billion in valuation, Flipkart had offered to purchase a sizable portion of Zepto. Despite Zepto founders continuing to run the company, the two companies could not agree on Flipkart’s request to acquire a controlling interest.
Zepto is reportedly in talks to raise a fresh round of funding with both current backers and private equity investors as a result of the deal falling through. Given the current momentum in India’s fast commerce space, the company anticipates a valuation of close to US $2.5 billion, almost twice as much as it did in its previous round.
Flipkart declined to comment for this article, but Aadit Palicha, the CEO of Zepto, said that the company isn’t seeking strategic investors and that he doesn’t address rumors in the market.
India’s fast commerce market is expected to grow to a value of US $5 billion by 2025, according to a report by consulting firm Redseer. Indian customers have even started ordering beauty products using this model, despite the industry’s struggles in Indonesia.
Not just Flipkart, an Indian behemoth, has experienced difficulties in this field. While Reliance-backed quick commerce startup Dunzo purportedly cut 300 jobs last year, Reliance-owned JioMart closed down its quick commerce pilot.
