Reliance Industries has written off its $200 million (Rs. 1754 Crores) investment in Bengaluru-based hyperlocal delivery platform Dunzo, according to the company’s FY25 annual report. Reliance Retail had led a $240 million (Rs. 2100 crores) funding round in January 2022, securing a 26% stake in Dunzo as part of its strategy to expand into India’s fast-growing quick commerce sector.
In its FY24 annual report, Reliance valued the stake at ₹1,645 crore. The investment was expected to help Dunzo scale its operations and compete with established rivals like Swiggy’s Instamart, Zomato-owned Blinkit, and Zepto. However, despite raising over $450 million (Rs. 3900 crores) in total funding, including the Reliance infusion, Dunzo’s ambitious expansion proved unsustainable.
FCRF Launches India’s Premier Certified Data Protection Officer Program Aligned with DPDP Act
Cash Burn, Market Pressures, and Leadership Exodus
Dunzo’s aggressive growth strategy included the launch of Dunzo Daily, promising grocery deliveries in 15–20 minutes. The model, however, pushed monthly expenses beyond ₹100 crore. Costly marketing moves, such as an Indian Premier League sponsorship, boosted brand visibility but added to the company’s financial strain.
The platform struggled to reposition itself from its early identity as a courier service to a serious player in quick commerce. As funding slowed and cash reserves dwindled, Dunzo extended delivery timelines from 15 minutes to 60 minutes, adopting order batching to reduce operational costs. By 2024, Dunzo had significantly reduced its footprint in both quick commerce and courier services, undergoing multiple layoffs. The broader slowdown in India’s startup funding environment during 2023 further hampered its ability to raise new capital.
The leadership team saw mass departures between late 2023 and 2024, with five board members resigning in September–October 2023. Cofounder Dalvir Suri, who headed Dunzo Merchant Services, left the same year, followed by cofounders Mukund Jha and Ankur Agarwal. The company’s decline culminated in early 2025, when its app and website went offline soon after CEO and cofounder Kabeer Biswas stepped down to lead Walmart-backed Flipkart’s quick commerce arm, Flipkart Minutes.
Google, holding a 20% stake, was another key backer of Dunzo, which once stood as a high-potential disruptor in India’s urban delivery landscape. Reliance’s write-off underscores the high risks in the quick commerce market, where deep-pocketed rivals and relentless operational costs have forced even well-funded startups to retreat.