Reliance Writes Off USD 200 Mn Investment in Dunzo Reliance had entered the quick commerce market by leading a USD 240 million funding round in Dunzo in January 2022. It acquired a 26 percent stake, positioning itself alongside other major backers such as Google, which held a 19.3 percent stake.
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Reliance Retail, the consumer-facing arm of Reliance Industries, has officially written off its investment of INR 1,645 crore in hyperlocal delivery startup Dunzo. The disclosure was made in the company's annual report and follows a series of setbacks for the once-promising startup.
Dunzo, founded in 2014, began as a hyperlocal convenience platform before transitioning into the grocery delivery and quick commerce space. Over time, it raised more than USD 450 million from major investors including Reliance, Google, and Lightbox. However, the startup struggled to sustain itself in the competitive quick commerce sector, known for its high cash burn and razor-thin margins.
The decline of Dunzo became evident earlier this year when the company ceased operations in January. Its app and website went offline, coinciding with the exit of its last remaining co-founder and CEO, Kabeer Biswas, who later joined Flipkart to head its quick commerce initiative, Flipkart Minutes.
Reliance had entered the quick commerce market by leading a USD 240 million funding round in Dunzo in January 2022. It acquired a 26 percent stake, positioning itself alongside other major backers such as Google, which held a 19.3 percent stake.
As Dunzo's operations faltered under financial pressure and operational challenges, Reliance shifted its strategy. The retail giant is now focusing on leveraging its extensive store network to support its grocery-focused quick commerce business. It is also expanding through the development of dark stores to cover areas not currently serviced by its retail outlets.
