India, April 19 -- Ecommerce major Flipkart reportedly held talks with quick commerce startup Zepto for acquiring a stake in the latter, but the talks fell through and are unlikely to be revived.

Now, Zepto is in talks with private equity funds, along with its existing investors, to close a fresh funding round. It is expected to hit a valuation of around $2.5 Bn on the back of the recent surge in the quick commerce sector over the past few months, ET reported.

"The companies met and Flipkart made an offer to Zepto valuing it at under $2 Bn.. but the deal didn't go ahead. Zepto's decision to not go ahead was centred around Flipkart wanting to pick up a majority stake in the startup..," the report said, citing a source familiar with the m...