- Zepto rejected Flipkart’s acquisition bid, seeking $2.5B valuation.
- Flipkart wanted controlling stake despite founders running operations.
- India’s quick commerce market booming despite challenges.
No deal, no problem
Indian quick commerce unicorn Zepto has reportedly declined Flipkart’s acquisition bid, thwarting the ecommerce giant’s attempt to gain a foothold in India’s instant delivery space.
Flipkart had proposed purchasing a large stake in Zepto at a valuation just under $2 billion. However, the two companies failed to agree on Flipkart’s request for controlling interest, even if Zepto founders continued to run the company.
Following the failed acquisition, Zepto is now in talks with private equity investors and existing backers to raise a new funding round.
Aiming high: Zepto’s valuation ambitions
The company is targeting a valuation of nearly $2.5 billion, almost double its previous round’s valuation, riding on the recent momentum in India’s quick commerce space. Zepto CEO Aadit Palicha declined to comment on market rumors, stating that the firm isn’t seeking strategic investors.
India’s quick commerce market is expected to reach $5 billion by 2025, according to a report by consulting firm Redseer.
Unlike in Indonesia, where the space has struggled, Indian consumers have embraced the model, even ordering beauty products via instant delivery.
The industry hasn’t been without its challenges. Reliance-owned JioMart closed its quick commerce pilot last year, and Reliance-backed startup Dunzo reportedly cut 300 jobs.
To read the original article: https://www.techinasia.com/zepto-declines-flipkart-deal-targets-25b-valuation-funding
