Reliance Retail has written off its $200 million investment in the hyperlocal startup Dunzo, amid the company’s financial struggles and exit from the quick commerce sector over the last two years, as reported by Inc42. Reliance possesses a 25.8% stake in Dunzo, acquired during its investment in January 2022, and is no longer participating in any discussions regarding further funding or a potential distress sale.
Dunzo’s Kabeer Biswas is reportedly in negotiations with high-net-worth individuals and family offices for an acquisition agreement, with the startup’s valuation estimated to be between Rs 300 crore ($25-$30 million), according to the report. Recently, Biswas stepped down, joining co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal, who had previously resigned.
Dunzo had explored conversations with Swiggy and Tata’s BigBasket for a possible buyout; however, those talks did not materialise, sources informed Inc42. Although the company aimed to achieve its first profitable year in FY25, it encountered difficulties in meeting salary payments for several months and settling outstanding dues for former employees.
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Founded in 2014 in Bengaluru, Dunzo last secured $75 million in a Series F funding round in April 2023, with a post-money valuation of $744 million as of April 14, 2023, according to data from Tracxn. However, most of its investors, including Reliance Retail, Google, and venture capital firm Lightbox, have now exited the company’s board of directors.
Initially starting as a hyperlocal delivery service, Dunzo expanded into the quick commerce arena but faced intense competition from well-funded competitors such as Swiggy’s Instamart, Zepto, and Zomato-owned Blinkit.
