Hyperlocal delivery service Dunzo’s app and website have gone offline shortly after the announcement of its co-founder and CEO Kabeer Biswas transitioning to Flipkart to enhance its quick commerce services. As reported by Inc42, all employees have departed amid concerns over outstanding salaries and investor withdrawals. Some employees have lodged complaints against Biswas regarding unpaid salaries, as indicated in the report. Numerous reports suggest the company has been delaying payments to both vendors and employees amid a significant funding crisis.
According to an Inc42 report, the company’s principal investor, Reliance, has officially written off its $200 million investment in the platform. The conglomerate, which acquired a 25.8% stake in Dunzo through its investment in 2022, is currently not engaging in any negotiations for further funding or potential asset sales. Many investors, including technology giant Google and venture capital firm Lightbox, have also exited the company’s board of directors, contributing to the shutdown of its website and apps. A Moneycontrol report indicated that the company had been in discussions with food delivery service Swiggy and Tata’s BigBasket regarding a potential acquisition, but these talks ultimately fell through. Biswas is the most recent and final co-founder to leave the company, following Mukund Jha, Dalvir Suri, and Ankur Agarwal. Founded in 2014, the company had last secured $75 million during a Series F funding round in April 2023, after which it laid off several employees.
