PhonePe, backed by Walmart, reportedly extended an offer to financially strained Dunzo to invest a substantial sum in its merchant network business. The talks, however, didn’t progress due to concerns among Dunzo’s investors regarding PhonePe’s strategic affiliation with Walmart, sources familiar with the discussions revealed.

Despite Dunzo facing cash depletion, PhonePe engaged in weeks of due diligence. Dunzo, grappling with depleting reserves, had hoped for an investment from PhonePe to alleviate a portion of its mounting debt, individuals privy to the discussions disclosed.

However, Dunzo requires approval from Reliance Retail, which holds a nearly 26% stake in the company, before securing any new investment, particularly from a strategic investor like Walmart, noted individuals familiar with the situation. A Reliance Retail spokesperson debunked the claims of receiving a formal proposal, labeling the information about PhonePe’s offer as factually incorrect. PhonePe refrained from commenting on the matter.

Dunzo’s CEO, Kabeer Biswas, declined to address the “hearsay stories,” emphasizing their focus on running a profitable business. He stated, “We are trying to run a profitable growing business and would continue to keep our heads down and execute.”

Meanwhile, insiders suggested that Dunzo, bearing a liability of approximately Rs 400-500 crore, contemplated the deal to alleviate this burden.

PhonePe’s interest in Dunzo stemmed from its aspirations in e-commerce, particularly through Pincode operating on the ONDC network. PhonePe aimed to leverage Dunzo’s extensive third-party merchant network for scaling its e-commerce venture, sources familiar with the matter highlighted.

Although PhonePe emerged as the most enthusiastic contender, discussions fell through, adding to Dunzo’s ongoing challenges. The company, facing cash constraints, is navigating discussions on settling liabilities with creditors amidst the crisis.

Dunzo, a quick-commerce startup, has grappled with paying its staff and encountering mounting pressure from vendors seeking pending dues. In another report, Reliance Retail’s commitment to providing fresh investment to Dunzo remains uncertain, spotlighting the dire need for capital.

PhonePe, backed by Walmart, reportedly extended an offer to financially strained Dunzo to invest a substantial sum in its merchant network business. The talks, however, didn’t progress due to concerns among Dunzo’s investors regarding PhonePe’s strategic affiliation with Walmart, sources familiar with the discussions revealed.

Despite Dunzo facing cash depletion, PhonePe engaged in weeks of due diligence. Dunzo, grappling with depleting reserves, had hoped for an investment from PhonePe to alleviate a portion of its mounting debt, individuals privy to the discussions disclosed.

However, Dunzo requires approval from Reliance Retail, which holds a nearly 26% stake in the company, before securing any new investment, particularly from a strategic investor like Walmart, noted individuals familiar with the situation. A Reliance Retail spokesperson debunked the claims of receiving a formal proposal, labeling the information about PhonePe’s offer as factually incorrect. PhonePe refrained from commenting on the matter.

Dunzo’s CEO, Kabeer Biswas, declined to address the “hearsay stories,” emphasizing their focus on running a profitable business. He stated, “We are trying to run a profitable growing business and would continue to keep our heads down and execute.”

Meanwhile, insiders suggested that Dunzo, bearing a liability of approximately Rs 400-500 crore, contemplated the deal to alleviate this burden.

PhonePe’s interest in Dunzo stemmed from its aspirations in e-commerce, particularly through Pincode operating on the ONDC network. PhonePe aimed to leverage Dunzo’s extensive third-party merchant network for scaling its e-commerce venture, sources familiar with the matter highlighted.

Although PhonePe emerged as the most enthusiastic contender, discussions fell through, adding to Dunzo’s ongoing challenges. The company, facing cash constraints, is navigating discussions on settling liabilities with creditors amidst the crisis.

Dunzo, a quick-commerce startup, has grappled with paying its staff and encountering mounting pressure from vendors seeking pending dues. In another report, Reliance Retail’s commitment to providing fresh investment to Dunzo remains uncertain, spotlighting the dire need for capital.