In its FY24 annual report, Reliance had valued this stake at Rs 1,645 crore. The conglomerate had invested in Dunzo to broaden its presence within the fast-growing quick commerce house.
Regardless of elevating over $450 million in whole, together with $200 million from Reliance Retail, Dunzo struggled to remain afloat amid intensifying competitors within the section. Its aggressive push for development, together with the launch of Dunzo Day by day, a 15–20-minute grocery supply service, led to a pointy rise in month-to-month bills, which exceeded Rs 100 crore at one level.
Expensive advertising initiatives, together with a high-profile sponsorship throughout the Indian Premier League (IPL), boosted visibility but additionally accelerated its money burn. Whereas the corporate gained enterprise quantity, it did not shake off its courier-first picture, which hampered its fast commerce ambitions.
With funding drying up and reserves depleting, Dunzo was pressured to extend its supply timelines from 15 to 60 minutes in a bid to chop prices by way of order batching. These challenges have been exacerbated by a broader slowdown in India’s startup funding panorama in 2023.
By 2024, Dunzo had drastically scaled down its operations in each fast commerce and courier providers, resorting to a number of rounds of layoffs. In distinction, rivals similar to Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto continued to broaden their footprint.
The ultimate blow got here in early 2025 when Dunzo’s app and web site went offline, shortly after cofounder and CEO Kabeer Biswas exited the corporate. He now heads Walmart-backed Flipkart’s fast commerce vertical, Flipkart Minutes.
In addition to Reliance, Google was one other main investor in Dunzo, holding a 20% stake.
Additionally Learn: Dunzo’s demise: How the Reliance-backed hyperlocal delivery startup unravelled
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