Reliance Retail Writes Off USD 200 Mn Investment in Dunzo Amid Cash Crunch Reliance, which held a 25.8% stake since its January 2022 investment, is no longer pursuing further funding discussions or distress sale negotiations.
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Reliance Retail has written off its USD 200 million investment in hyperlocal delivery startup Dunzo, citing the company's ongoing cash crunch and retreat from quick commerce over the past two years, according to an Inc42 report.
Reliance, which held a 25.8% stake since its January 2022 investment, is no longer pursuing further funding discussions or distress sale negotiations.
Dunzo, founded in 2014 in Bengaluru, is now valued between INR 300 crore (USD 25-USD 30 million), with CEO Kabeer Biswas reportedly in talks with high-net-worth individuals and family offices for an acquisition. Biswas recently resigned, following the earlier exits of co-founders Mukund Jha, Dalvir Suri, and Ankur Agarwal.
Once a rising star in the quick commerce space, Dunzo faced mounting challenges, including delayed salary payments and unsettled dues for former employees, despite plans to achieve profitability in FY25. Earlier buyout talks with Swiggy and Tata's BigBasket failed to materialise.
The startup last raised USD 75 million in a Series F round in April 2023, attaining a post-money valuation of USD 744 million. However, intense competition from well-funded players like Swiggy's Instamart, Zepto, and Zomato-owned Blinkit significantly impacted its market standing.
Most of its investors, including Reliance Retail, Google, and venture capital firm Lightbox, have now departed from the company's board of directors.
