Run-through
Reliance Industries crossed out its financial investment in Dunzo after the hyperlocal shipment platform had a hard time in the competitive fast commerce market. Regardless of considerable financing, consisting of a $200 million financial investment from Reliance Retail, Dunzo dealt with unsustainable money burn due to aggressive growth and marketing. Eventually, Dunzo’s operations decreased, resulting in its app and site going offline.
Reliance Industries has actually crossed out its financial investment in hyperlocal shipment platform Dunzo, according to its yearly report for FY25. Reliance Retail had actually led a$240-million(around Rs 1,800 crore)financing round in Dunzo in January 2022, obtaining a 26%stake in the Bengaluru-based business.
In its FY24 yearly report, Reliance had actually valued this stake at Rs 1,645 crore. The corporation had actually purchased Dunzo to broaden its existence in the fast-growing fast commerce area.
Regardless of raising over $450 million in overall consisting of $200 million from Reliance Retail, Dunzo had a hard time to survive amidst magnifying competitors in the section. Its aggressive push for development, consisting of the launch of Dunzo Daily, a 15– 20-minute grocery shipment service, resulted in a sharp increase in month-to-month costs, which crossed Rs 100 crore at one point.
Pricey marketing efforts, such as a prominent Indian Premier League (IPL) sponsorship, increased exposure however likewise intensified the business’s money burn. While Dunzo got organization volume, it stopped working to shed its image as mostly a carrier service, an understanding that hindered its fast commerce aspirations.
As moneying dried up and money reserves diminished, Dunzo was required to extend its shipment timelines from 15 minutes to 60 minutes in a quote to decrease expenses through order batching. The scenario was intensified by a wider downturn in India’s start-up financing environment through 2023.
By 2024, the business had actually dramatically reduced operations in both fast commerce and carrier services, going through numerous rounds of layoffs. On the other hand, competitors such as Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto continued to broaden their footprint.
The last blow can be found in early 2025 when Dunzo’s app and site went offline, soon after cofounder and CEO Kabeer Biswas stepped down. He now heads Walmart-backed Flipkart’s fast commerce vertical, Flipkart Minutes.
In between late 2023 and 2024, much of Dunzo’s management group left as the business had a hard time to raise fresh capital. In September– October 2023, 5 members of its board of directors resigned. Around the exact same time, cofounder Dalvir Suri, who headed Dunzo Merchant Services, likewise left the business.
Following Suri’s exit, cofounders Mukund Jha and Ankur Agarwal left the company to pursue brand-new endeavors.
Reliance, Google was another significant financier in Dunzo, holding a 20% stake.
Check out: Dunzo’s death: How the Reliance-backed hyperlocal shipment start-up unwinded
