The report claimed, “The previously unreported talks are still ongoing, all three sources said. The acquisition talks follow a turbulent year at Dunzo, which has been struggling to raise cash and make staff payroll. Dunzo, which has raised about $500 million to date, has ceded much of the hyperlocal delivery market to upstarts Zepto, Swiggy and Zomato’s BlinkIt in recent quarters.”

The retail arm of Reliance Industries, which picked up a 26% stake in Dunzo in 2022 for $200 million, has not approved the deal yet. Although, Dunzo refuted the report and termed it “hearsay”.

Dunzo said, “We are on path to free cash flow break even in the month of March’24 and we have not had any conversation with any player for an acquisition of the business.”

The report said, “The deal has yet to materialize as at least two players scramble to iron out the terms. Flipkart, owned by Walmart, is skeptical about precisely what it would be able to take over if it were to acquire Dunzo, which has several IP relationships with Reliance Retail, India’s largest retail chain. Reliance Retail, the largest investor in Dunzo, has also not approved the deal.”

Dunzo has also held talks with multiple companies for an acquisition, including Tata and Zomato, the report added.