Negotiations between Flipkart and Zepto for a deal have stalled, prompting the quick commerce startup to turn to financial investors instead.

Flipkart and Zepto engaged in discussions for a potential deal, but these talks did not progress and are unlikely to resume, according to sources familiar with the matter. Zepto, a leading player in the fast-growing quick commerce segment, is reported to have chosen a financial fundraising round over a strategic sale, as disclosed by the same sources under the condition of anonymity due to the private nature of the discussions.

During the negotiations, Flipkart made an offer to Zepto, valuing it at less than $2 billion. However, the deal did not proceed, with Zepto's decision to opt out primarily attributed to Flipkart's desire to acquire a majority stake in the startup.

Sources further revealed that Flipkart, owned by Walmart, was determined to secure a significant ownership stake while allowing the founders to continue managing the company. Talks came to a halt when Flipkart expressed reluctance to settle for a minority stake.

Currently, Zepto is in discussions with several private equity funds and existing investors to finalize a new funding round. It is anticipated to achieve a valuation of approximately $2.5 billion, nearly double its previous valuation, driven by the rapid growth of the quick commerce sector in recent months.