## Flipkart's Zepto Deal Falls Through, Company Eyes Own Quick Delivery Service
Flipkart's attempt to acquire a stake in Zepto, a leading quick commerce player, has fallen through, according to a report by The Economic Times. The deal is unlikely to be revived, leaving Flipkart to pursue its own quick delivery service.
Meanwhile, Zepto is in talks with private equity funds and existing investors to secure fresh funding. The company is expected to achieve a valuation of $2.5 billion, reflecting the rapid growth of the quick commerce sector.
Flipkart's interest in Zepto highlights its desire to enter the instant-delivery market, where it currently lags behind competitors. The company plans to launch its own quick delivery service with a target delivery time of under 30 minutes.
Previously, Flipkart also explored a significant investment in Dunzo, another quick commerce player. However, those talks did not progress. Dunzo was also approached by PhonePe for its ONDC-led ecommerce business, but the deal was blocked by Dunzo's board.
The Open Network for Digital Commerce (ONDC) is a government-backed initiative aimed at promoting competition in the e-commerce sector and reducing the dominance of Amazon and Flipkart.
A recent report by UBS predicts that the quick commerce sector will reach a gross merchandise value (GMV) of $34 billion by FY29, with a total addressable market (TAM) potential of $520 billion. The report acknowledges the current advantage of major quick commerce platforms in terms of infrastructure, but also suggests the possibility of a more fragmented market in the future.