PhonePe explored investment in Dunzo’s merchant business

Walmart-backed PhonePe recently made an offer to cash-strapped Dunzo to invest a significant amount in its merchant network business, at a time the latter is desperately seeking cash, sources aware of the talks said.

The proposal, however, didn’t move forward due to concerns among the troubled startup’s investors due to the strategic nature of PhonePe, which is majority owned by Walmart after its split from ecommerce firm Flipkart, these sources involved in the discussions said.